VISION€¦ · VISION THE BUSINESS OF SUCCESS SSI operates based on the vision The Business of...

VISIONTHE BUSINESS OF SUCCESS

SSI operates based on the vision “The Business of Success”.

At the heart of all our products and services is a drive for making success happen. We help unlock opportunities in financial markets, and turn it into prosperity and growth.

We put all our resources and ideas behind bringing success to our clients, our people, our shareholders and the communities we operate in.

MISSIONCONNECTING CAPITAL TO OPPORTUNITIES

SSI’s reason for existence is to connect capital to opportunities.

This purpose unifies all businesses that come under the SSI brand, and will guide any future diversification that the brand may undertake.

CORE VALUESSOLUTIONS-LED: We are focused on the outcome of making our customers successful, and we prioritize their individual needs over existing products or processes.

SKILLED: We are experts in our industry and in our markets, and will continually enhance our professional skills to provide the highest standards of service to our customers.

INVENTIVE: We empower and encourage our people to find creative new ways to bring success to SSI and its customers.

HEADQUARTER:72 NGUYEN HUE, DISTRICT 1, HOCHIMINH CITY

TEL: +84 8 3824 2897FAX: +84 8 3824 2997

NGUYEN CONG TRU BRANCH92-94-96-98 NGUYEN CONG TRU, DISTRICT 1, HOCHIMINH CITY

TEL: +84 8 3821 8567FAX: +84 8 3821 3867

VUNG TAU BRANCH4 LE LOI, VUNG TAU CITY

TEL: +84 64 352 1906FAX: +84 64 352 1907

NHA TRANG BRANCHLEVEL 3, QUEEN BUILDING, 50 LE THANH PHUONG, NHA TRANG CITY,KHANH HOA PROVINCE

TEL: +84 58 381 6969FAX: +84 58 381 6968

SAIGON SECURITIES INC. BRANCH AT HANOI1C NGO QUYEN, HOAN KIEM DISTRICT, HANOI

TEL: +84 4 3936 6321FAX: +84 4 3936 6311

MY DINH BRANCHTHE MANOR BUILDING – MY DINH, ME TRI, TU LIEM, HANOI

TEL: +84 4 3794 6699FAX: +84 4 3794 6677

HAI PHONG BRANCH22 LY TU TRONG, HONG BANG DISTRICT, HAIPHONG CITY

TEL: +84 31 356 9123FAX: +84 31 356 9130

TRAN BINH TRONG TRANSACTION OFFICE25 TRAN BINH TRONG, HOAN KIEM DISTRICT, HANOI

TEL: +84 4 3941 3383FAX: +84 4 3941 3385

HONG BANG TRANSACTION OFFICENO 769, HONG BANG ROAD, WARD 6, DISTRICT 6, HOCHIMINH CITY

TEL: +84 8 3969 5898FAX: +84 8 3969 5894

SSI ASSET MANAGEMENT COMPANY LTD.1C NGO QUYEN, HOAN KIEM DISTRICT, HANOI

TEL: +84 4 3936 6321FAX: +84 4 3936 6337

NETWORK

TABLE OFCONTENT

VISION - MISSIONChairman’s Message 02Development Milestones 06Key Business Units 08Financial Highlights 10

12 MANAGEMENT STRUCTUREOrganisational Structure 14Board of Directors 16Board of Directors' Activities 18Supervisory Board's Activities 20Executive Board 22

24 BUSINESS ENVIRONMENT AND PROSPECTS2011 Economy Overview 262012 Outlook 32

38 BUSINESS PERFORMANCESecurities Services 40Investment Banking 46Asset Management 52Treasury 56

60 RISK MANAGEMENT Summary of Risk Management In SSI 62Market Risk 63Credit Risk 64Liquidity Risk 65Operational Risk 66Information Technology Risk 66Compliance Risk 67Branding Risk 68Human Resource Risk 69Legal Risk 702012 Development Plan 71

72 ENABLERSInformation Technology 74Human Resource Management 78Investor Relations 80Corporate Culture 82Corporate Responsibilities 84

86 AUDITED FINANCIAL REPORTSGeneral Information 88Report Of Management 90Independent Auditors’ Report 91Consolidated Balance Sheet 92Consolidated Income Statement 96Consolidated Cash Flow Statement 98Consolidated Statement Of Changes In Owners’ Equity 100Notes To The Consolidated Financial Statements 102

146 OTHER DATAShareholder Information And Management Level 148Corporate Information 154Network 156

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32

Dear fellow shareholders,

2011 was a tough year for global and local economies. The global economy was negatively impacted by a range of factors: rising commodity prices, mounting inflation, natural disaster in Japan, S&P’s downgrade of US government debt, Europe’s sovereign debt crisis, political unrest in North Africa, and the slowdown of China’s economy. Vietnam, with an import & export structure greater than 160% GDP, the weakening global economy partially impacted the country’s GDP growth. While still impressive, Vietnam’s 2011 GDP growth was only 5.89%, lower than the government’s targeted number at the beginning of the year and lower than all other years post 2000, excluding 2009’s financial crisis related growth of 5.3%. Inflation increased as high as 18.13% year on year in 2011. Rising prices and measures to curb inflation took their toll on the economy, in both short and long term.

The somber macroeconomic landscape and poor business performance deeply hurt the market and investors' confidence in 2011. Investors during the year seesawed between optimism about the direction of government policies and fears of the possible effects that it could have on the economy and the stock market. The lack of confidence in the economy and the currency had domestic investors essentially move to the sidelines. The lack of investors’ interest can also be seen in the immaterial net flows into the stock market, which were VND 320 billion and VND 1,460 billion for domestic and international investors, respectively. The VN-Index for the year lost 30% while almost 50% of HNX index value evaporated in 2011.

In the difficult environment, SSI focused more on restructuring our internal organization, streamlining our business operations, making it more efficient, cutting costs where we believed were not efficient, developing new products to enhance clients’ experience at SSI, and investing more in technology. In the past

CHAI

RMAN

’S

NGUYEN DUY HUNGChairman cum CEO

While there will still be difficulties in the near term, but we believe in the growth potential of Vietnam over the long term. With the message of 2012 “Finding opportunities in difficulties”, we believe we are well-positioned to face the challenges and to realize the near and long term market opportunities available.

few years, we have also prepared ourselves to deal with adverse conditions so that we can mitigate the downside and if possible, position the firm to take advantage of the opportunities presented by improving markets. With this strategy along with active and strong risk management, SSI ended 2011 with a profit. For the year, SSI earned VND 848,043 billion in revenue, declining 43.59% compared to 2010 and VND 126.6 billion in earnings before tax, 86% lower than that of 2010. With the strategy of consolidating some of our investment into SSI’s earnings, we were able to credit back VND 161 billion of reserve.

Although our revenue and profit declined, clients as well as investors applauded our efforts. At the end of 2011, SSI reclaimed our number 1 position in brokerage market share at Ho Chi Minh Stock Exchange with remarkable rate of 13.21%. 2011 total trading volume for the whole market declined 60% compared to 2010, but at SSI’s Brokerage Services department, trading volume only declined 40%. In a year that was considered to be a tough year for raising capital, the Investment Banking team successfully helped Hoang Anh Gia Lai Joint Stock Company raise USD 90 million via offshore bond offering. The Investment Banking team also successfully advised Petrolimex with its IPO in July. At the end of summer 2011, SSI Principal Investment team officially became members of SSI Asset Management (SSIAM) and all listed investments transferred over to SSIAM for management. The SSIAM team restructured the principal investment portfolio quite a bit with a strategy focusing more on long term.

Despite the economic woes, there were some bright points in 2011 that are worth highlighting. Vietnam’s long competitive edge in agriculture recorded high export volume and a trade surplus, re-asserting its position in the country’s development

2

MES

SAGE

54

strategy and a competitive advantage for Vietnam on the global agricultural map. Export sectors like textiles, footwear, and seafood also surpassed others and received a great deal of investment. With a longstanding investment philosophy of investing in the country’s competitive advantages, outstanding results from these sectors in 2011 helped SSI tremendously in recognizing return on investment.

Quality of investment is very important to us, thus even though we saw the market trading at a very low PE compared to our neighbouring countries and some of the stocks were even traded under their book value, we did not invest in them. Some of these stocks get to where they are because they were traded so high during the high time and didn’t deliver the performance that they had promised. For that reason while we have seen a lot of opportunities, we have been selective in our investment and we have advised our clients to do the same. This is an element that has differentiated us from others.

In 2012, we believe global and domestic economies will continue facing challenges. The first and most urgent task for Vietnam is to restore macro-economic stability, control inflation, and resume growth. The government will also focus on economic restructuring, growth renovation, fast and sustainable development. The objective of economic restructuring and growth model renovation is to speed up the transformation of economic and sector structures in order to increase productivity, quality, efficiency and competitiveness on both domestic and international markets to enable local producers to join in certain stages of the regional and global production network and value chain. With this objective, the process of economic restructuring will be focusing on improving quality, productivity, and efficiency of industry, services, and agriculture sectors. We believe that if these three issues can be improved, the growth in these three sectors will be tremendous in the long run. With these prospects, we will continue as we have always done in the past co-investing and helping enterprises to map out long-term strategy as well as finding strategic investment partners.

2012 may also be another difficult year for capital access as financial market remains unstable and tightening credit continues. The nation’s squeeze on credit made it difficult for local enterprises and government projects to continue at the end of 2011; thus searching for outside capital became very popular. Many foreign enterprises with strategy to have a

CHAIRMAN’S MESSAGE

position in Vietnam took this opportunity to lock in strategic investment deals. We believe that strategic investment deals will increase in number and scale in 2012 as banks continue to be tough with lending as well as Vietnam Government continues to restructure the economy. With the advantage of having deep local knowledge and large client pool, we should be able to work with our international as well as domestic partners to help them find the perfect match.

The financial market and financial services industry will continue to deal with the significant effects of the economic changes that are undergoing domestically and globally. Some will fight the changes given the uncertainty that comes with it, but our role as an advisor, a financier, a market maker, and an asset manager embracing the change early has been fundamental to our success. Staying close to our clients and listening to their evolving needs reinforces our willingness to accept and adapt to change. This is the key to SSI’s success.

While there will still be difficulties in the near term, but we believe in the growth potential of Vietnam over the long term. With the message of 2012 “Finding opportunities in difficulties”, we believe we are well-positioned to face the challenges and to realize the near and long term market opportunities available.

On behalf of Board of Directors, we would like to sincerely thank our valued Shareholders, Clients, and Partners who have always supported SSI in the past years. We are also grateful to our employees for all their dedication, creativity, and effort helping SSI to overcome all challenges and to carry out the mission of “Connecting capital to opportunities”.

Warmest regards,

Ho Chi Minh, 9 March 2012. Chairman cum CEO

Nguyen Duy Hung

76

MIL

ESTO

NES

1999 - 2011

DEVELOPMENT MILESTONESDE

VELO

PMEN

T

1999 - 2000• 30/12/1999: SSI was founded with the

head office based in Ho Chi Minh City, and two main operations: Brokerage services & Investment Advisory. The initial chartered capital was VND 6,000,000,000.

2001• 02/2001: Chartered capital reached

VND 9,000,000,000.• 07/2001: Chartered capital was

raised to VND 20,000,000,000 with 4 main operations as follows: Investment Advisory, Brokerage Services, Principal Investment & Securities Depository.

2002• 09/07/2002: SSI established its branch

in Hanoi, expanding its networks to Northern areas.


VND 23,000,000,000.

2008• 03/03/2008: Chartered capital reached

VND 1,199,998,710,000.• 16/04/2008: Chartered capital reached

VND 1,366,666,710,000.• SSI received the “Best Broker in

Vietnam”, presented by the prestigious FinanceAsia magazine.


VND 1,533,334,710,000.• SSI was awarded the “Best Broker in

Vietnam” and the “Best Equity House in Vietnam”. These awards were presented by the famous FinanceAsia for the second consecutive year.


VND 1,755,558,710,000.• 18/05/2010: Chartered capital reached

VND 3,511,117,420,000.• SSI was in the list of the Top 10

companies contributing the highest amount of tax to the Government.

• SSI was awarded the “Best Broker in Vietnam” and the “Best Equity House in Vietnam”. These awards were presented by FinanceAsia for the third consecutive year. SSI is the first company to receive the “Best Investment Bank in Vietnam” prize.

• SSI Asset Management Ltd. (SSIAM) was honored to be the first asset management company to win the “Best Vietnam Onshore Fund House” presented by the Asian Investor magazine.

2005• 02/2005: Chartered capital was raised

to VND 26,000,000,000 with 5 main operations: Investment Advisory, Brokerage Services, Principal Investment, Securities Depository and Investment Portfolio Management.

• 06/2005: SSI raised chartered capital to VND 52,000,000,000 with 6 services inclusive of Underwriting Service.


VND 120,000,000,000.• 05/2006: Chartered capital reached

VND 300,000,000,000.• 09/2006: Chartered capital reached

VND 500,000,000,000.• 15/12/2006: SSI’s stock was listed

on the Hanoi Securities Trading Center (now known as Hanoi Stock Exchange) .


VND 799,999,170,000.• 03/08/2007: The establishment of

SSIAM Co. Ltd.• 29/10/2007: SSI was officially listed

on Hochiminh Stock Exchange.

2011• SSI was honored to receive the

Third Labor Medal for outstanding achievements in construction and development the stock market in the period of 2000-2010.

• SSI was awarded the “Best Investment Bank in Vietnam” and “Best Broker in Vietnam” by FinanceAsia for the fourth consecutive year.

• SSI was the only company to receive 3 awards of Alpha South East Asia magazine: “Best Investment bank in Vietnam”, “Best bond house in Vietnam” and “Best High Yield Bond Deal of the Year in Southeast Asia”.

• SSI was the only company that won 2 awards “Best Domestic Investment bank in Vietnam” and “Best Equity House in Vietnam” of The Asset.

30/01/2012: Chartered capital reached VND 3,526,117,420,000.

98

KEYBUSINESS UNITSSaigon Securities Inc. (SSI - HOSE) is a leading and reputable financial corporation in the Vietnamese market. SSI provides a wide range of products, financial services with international standards for institutional, individual, domestic and foreign customers, including:

SECURITIES SERVICES - Basic products and services for listed stocks include securities accounts opening, securities services, order trading

services, cash transactions, securities depository, OTC transactions consultancy and support. - Financial corporate investment services and support for customers in securities trading. - E-trading services which include Smart Trading, Web Trading, Contact Center, SMS. - Market summaries, business sector analysis, stock reports, on-site visits to companies and workshops on investment

opportunities for both institutional and individual customers.

INVESTMENT BANKING - Corporate finance advisory: Business evaluation, corporate financial restructuring, mergers and acquisitions (M&A),

business dissolution and division, etc. - Capital raising advisory in domestic and foreign capital markets, including equity capital market and debt capital market:

Equitization advisory, stock issuance advisory and underwriting (IPO and other issuances), stock listing advisory, corporate restructuring advisory and derivatives products.

SSI ASSET MANAGEMENT (SSIAM) - Fund management includes middle and long term onshore and offshore fund management. - Portfolio management includes full and specific portfolio management services for institutional and individual, domestic and

foreign customers. - Assets management for high-income clients. - Efficient value-added services for investors.

KEY BUSINESS UNITS

1110

FINANCIALHIGHLIGHTS

BUSINESS OPERATION RESULTS 2009 2010 2011

Net revenue (VND) 1,121,526,055,660 1,503,616,689,880 848,042,922,890

Net profit from operating activities (VND) 881,789,621,544 899,895,527,639 163,330,324,796

Profit before tax (VND) 955,711,514,448 902,819,486,257 126,604,379,877

Profit after tax (VND) 804,079,895,938 689,469,002,878 82,753,235,555

BALANCE SHEET 2009 2010 2011

Total assets (VND) 7,076,985,421,509 8,792,894,565,983 6,507,513,198,854

Chartered capital (VND) 1,533,334,710,000 3,511,117,420,000 3,526,117,420,000(*)

Weighted average of total stocks in the market 153,322,201 350,711,972 349,611,742

Total equity (VND) 4,818,501,330,788 5,459,312,028,182 5,080,665,298,616

OTHERS 2009 2010 2011

Asset Structure

Short-term assets/Total assets 66.25% 72.40% 49.54%

Long-term assets/Total assets 33.75% 27.60% 50.46%

Capital Structure

Total liabilities/ Total assets 31.91% 37.08% 20.75%

Total owners’ equity/ Total assets 68.09% 62.09% 78.07%

PROFIT RATIOS 2009 2010 2011

Profit after tax/Total assets (ROA) 11.36% 7.84% 1.27%

Profit after tax/Total equity (ROE) 16.69% 12.63% 1.63%

Profit after tax/Chartered capital 52.44% 19.64% 2.35%

Profit after tax/Net revenue 71.70% 45.85% 9.76%

Earnings per share ( EPS ) (VND) 5,360 1,982 227

(*) Chartered capital on 31/12/2011: On 30/01/2012, Chairman of State Securities Commission of Vietnam granted License number 72/GPĐC-UBCK to amend Operating License number 03/GPHĐKD of Saigon Securities Inc. in order to remark the new chartered capital at VND 3,526,117,420,000 (says three thousand five hundred twenty six billion, one hundred and seventeen million, four hundred and twenty thousand dong).

FINANCIAL HIGHLIGHTS

Total Assets

2007 2008 2009 2010 2011 YearVND billion

10,000

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

-

Chartered Capital

2007 2008 2009 2010 2011 YearVND billion

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500

-

Net Revenue

2007 2008 2009 2010 2011 YearVND billion

1,600

1,400

1,200

1,000

800

600

400

200

-

Profit after Tax

2007 2008 2009 2010 2011 YearVND billion

1,000

900

800

700

600

500

400

300

200

100

-

IMANAGEMENT

STRUCTUREOrganisational Structure 14

Board of Directors 16Board of Directors' Activities 18

Supervisory Board's Activities 20Executive Board 22

ORGANISATIONAL STRUCTURE

ASSET MANAGEMENT

Investment Management

Sales & Marketing/Product Development

Research

Operations

North

South

Valuation & Research

Business Development

INVESTMENT BANKING

Institutional Brokerage Retail Brokerage

Institutional Sales & Equity Sales

Business Development

Institutional Research & Advisory Branches/Transaction offices

Retails Research & Advisory

Operations

SECURITIES SERVICES TREASURY SUPPORT UNITS

Human Resources

Corporate Communications

Information Technology

Administration

BUSINESS UNITS SUPPORT UNITS

GENERAL SHAREHOLDERS

BOARD OF DIRECTORS

BOARD OF MANAGEMENTINVESTMENT COMMITTEE BOARD OF SUPERVISORY

RISK MANAGEMENTLEGAL/COMPLIANCE

GOVERNANCE/CONTROL UNITS

INTERNAL AUDITFINANCE

14 15

1716

Chairman cum CEOMr. Nguyen Duy Hung is the Chairman and the CEO of SSI. He is also the SSI's founder.

Board MemberMr. Ngo Van Diem has more than 30 years of experience in Vietnam investment industry as well as international financial market. He was appointed as manager and senior manager in a corporation innovation program, an industrial zone development scheme and economic integration projects of Government Agencies. He was formerly Director of the State Committee Office of Investment Cooperation Department, Director of the State Evaluation Council, Director of Vietnam Industrial Zones Board of Management and Vice Director of Research Department of Prime Minister. Mr. Diem graduated from Leipzig University and graduated with Doctor Degree in Economics from Martin Luther University Halle in Germany.

Board MemberMr. Nguyen Hong Nam is a successful manager in many business areas. He graduated with an MA from Lugansk University in Ukraine.

Fullname Position Degree of independence (*) Appointment date

Mr. Nguyen Duy Hung Chairman Chairman cum CEO,related party to major shareholder of Nguyen Duy Hung Co.Ltd

Appointed on 1 November 1999Re-appointed on 27 September 2003Re-appointed on 28 April 2010

Mr. Ngo Van Diem Board member Non – executive, Independent Board Member Appointed on 21 April 2007

Mr. Nguyen Hong Nam Board member Executive Board Member Appointed on 1 November 1999

Re-appointed on 24 April 2009

Ms. Dam Bich Thuy Board member Non-executive, related party to major shareholder Appointed on 24 April 2009

Mr. Bui Quang Nghiem Board member Non-executive, Independent Board Member Appointed on 24 April 2009

Mr. Yoshio Urata Board member Non-executive, related party to major shareholder Appointed on 28 November 2011(temporarily appointed by

Daiwa Securities Group Inc.)

Mr. Alistair Marshall Bulloch Board member Non-executive, related party to major shareholder Appointed on 19 October 2010 and approved in the Annual

General Meeting on 28 April 2011

(*) Independent Board Member is determined, pursuant to point d, item 1 of Article 2 of the Regulation of corporate governance applicable to listed companies issued together with Decision No. 12/2007/QD-BTC dated March 13, 2007 of the Minister of Finance.

BOARD OF DIRECTORS

BOARD OF DIRECTORS

Mr. Nguyen Duy Hung Mr. Ngo Van Diem Mr. Nguyen Hong Nam

Board MemberMr. Urata currently is Chairman of Daiwa Capital Markets Hong Kong Limited. He is a banking expert in Japan. Mr. Urata has been a member of Daiwa for many years. Prior to his current role, Mr. Urata was appointed as many key positions at Daiwa Capital Markets.

Mr. Yoshio Urata

Board MemberMr. Bulloch is ANZ Chief Executive Officer and Senior Advisor in Asia – Pacific Region, Europe and America of ANZ. He has more than 30 years of experience in the banking sector.

Mr. Alistair Marshall Bulloch

Board MemberMr. Bui Quang Nghiem is Director of Nghiem & Chinh Law Partnership and Vice Chairman of Ho Chi Minh Law Association. Mr. Nghiem graduated from Halle University – Germany.

Mr. Bui Quang Nghiem

Board MemberMs. Dam Bich Thuy currently is General Director of ANZ Vietnam. Ms. Thuy was formerly Director of the Natural Resources Department, a loan scheme from ANZ Singapore Investment Banking supporting Asia and member of ANZ Finance Cooperation. Ms. Thuy graduated with MBA from The Wharton School of Business, the US.

Ms. Dam Bich Thuy

1918

The Board had meetings at the end of each quarter to discuss on the market situations, to give guidelines to the Executive Board for implementing. The Board has issued four Resolutions on: conversion price of SSICB2010 convertible bonds; the approval on implementing margin trading; the approval on Employee Stock Ownership Plan (ESOP) proposal; the replacement of a member of the Board and the closedown of Ham Long Branch.

In 2011, regarding the inspection of the Company’s management by the Board: SSICB2010 convertible bond principal was repaid; purchase of 3 million treasury shares, improvement in risk management procedures, monthly financial performance and provision for decline in the market price of securities, implementation of cost saving scheme, 2012 business plan proposal in preparation of the 2012 Annual Shareholders' Meeting, implementation of reduction of the workforce, as part of the restructuring program while preserving the rights and benefits of employees according to labor laws and implementation of margin financing service.

The Board postposed the establishment of remuneration committee, audit committee, nomination committee and bonus committee due to undesirable situation in the company.

BOARD OF DIRECTORS' ACTIVITIES

BOARD OF DIRECTORS'ACTIVITIES

According to ongoing operation principles for many years, the Board of Directors always:

• Acts for the best interest of stakeholders;• Be full responsible for company business, including operating, organizing and supervising company business activities; • Respects the interest of shareholders by complying with laws, regulations, ethical and professional standards.

The Board currently comprises of seven members, five Non Executive Directors and two Independent Members; all of them have roles and responsibilities, in compliance with the law and company’s regulations. Independent Members are not Executive Directors, major shareholders or related to major shareholders. All of the Board members are experienced in business and financial management, macroeconomic research and legal consulting. Their effective contribution to company's strategy is remarkable in recent difficult and competitive market conditions. One achievement of the Board in 2011 was to implement ongoing risk management policy and process, in which market share was not the company’s first priority. Actual 2011 business results confirmed the appropriateness of this policy, and helped preserving the safety of the company’s assets and operations during a period of instability in the market.

Ensuring good information flows between the Board, reports were sent to all members in advance by the 10th of every month to review financial performance, to follow-up the progress achieved in the implementation of the Board’s decisions and the action plan of the Board in the following month. The Board members are continually updated through written and verbal reports. Internal control policy allows the Board Member to deal directly with any manager of the company in order to request information and data, while respecting the management authority of the CEO.

Resolutions of the Board in 2011

No. Resolution ref. number

Dated Governing

1 01/2011/NQ-HDQT 28/02/2011 Approval on conversion price of SSICB2010 in to common shares is VND 35,639/share

2 02/2011/NQ-HDQT 15/7/2011 Approval on implementing margin trading service and personal portfolio management according to the laws on securities

3 03/2011/NQ-HDQT 20/10/2011 Approval on right issue for senior managers

4 04/2011/NQ-HDQT 28/11/2011• Approval on resignation of Mr. Yuichi Akai• Appointment of a member of the Board, Mr. Yoshio Urata since 28 Nov. 2011• Closedown of Quang Ninh Branch by 31 Dec. 2011

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SUPERVISORY BOARD'SACTIVITIES

In 2011, the effective contribution of the Supervisory Board is a key success of the Company.

With experience, extensive knowledge and expertise in their fields, the Supervisory Board Members have been efficient representatives of shareholders to control activities of the Board of Directors, compliance with the laws and with the decision of the Annual Shareholders' Meeting. The Board of Directors and Management have supported members of the Supervisory Board in their roles and responsibilities in the performance of the activities of the Supervisory Board, in accordance with the company’s Corporate Governance and other internal corporate regulations.

Besides implementing the control activities upon the request of shareholders, the Supervisory Board regularly attend the meetings of the company’s Management and the Board of Directors or through the monitoring of the meeting materials and written reports.

Activities of the Internal Control Department of the Company also helped the Supervisory Board. The system of internal control system was set up based on Regulations governing Organization and Operation of securities companies under the Decision No. 27/2007/QD-BTC by the Minister of the Ministry of Finance dated 24 April 2007. The Internal Control Department has experienced staff with professional certificates to fulfill its duties to maintain the compliance with the company's internal regulations. The report from Internal Control Department is a crucial source for the Supervisory Board in the performance of its responsibilities.

Members of the Supervisory Board

Full name Position Level of independence Appointment date

Mr. Nguyen Van Khai Head of the Supervisory Board Is not an employee of the company

Elected on 01 Nov. 1999Re-elected on 08 April 2006Re-elected on 28 April 2011

Mr. Dang Phong Luu Member of the Supervisory Board Is not an employee of the Company Elected on 26 March 2005

Re-elected on 28 April 2010

Ms. Ho Thi Huong Tra Member of the Supervisory Board Is not an employee of the Company Elected on 21 April 2007

CHANGES OFKEY PERSONNEL

Changes in the Board of Directors, the Supervisory Board, the Executive Management and the Chief Accountant:• In 2011, there was a change in the Board of Directors: Mr. Yuichi Akai officially resigned on 28 November 2011 and Mr. Yoshio

Urata was contemporarily appointed as a replacement.• There was no change in the Supervisory Board, the Executive Management and Chief Accountant.• The Company disclosed the replacement of the Board member on official letter number 1246/2011/CV-SSIHO dated 28 November, 2011.

INVESTMENT BANKINGASSET MANAGEMENT TREASURY

Board of Directors

Governance / Control Units

Business Units

Suppot Units

Mr. Nguyen Duy HungChairman cum CEO

Mr. Nguyen Hong NamDeputy CEO

Mr. Nguyen Kim LongDirector - Legal & Internal Control

Mr. Tran Duong Anh VietDirector - Internal Audit

Ms. Nguyen Thi Thanh HaCFO

Ms. Hoang Thi Minh ThuyChief Accountant

SECURITIES SERVICES

Ms. Le Thi Le HangCEO

Mr. Nguyen Khac HaiDeputy CEO

Mr. Nguyen Phan DungDirector - Investment

Mr. Nguyen Thanh TungDeputy CEO

Ms. Nguyen Thanh HuongManaging Director

Mr. Pham Quang ThangActing Director - Northern Region

Mr. Pham Dinh HuyDirector

Ms. Nguyen Ngoc AnhDirector - Northern Region

Mr. Peter SorensenDirector - Business Development

Ms. Nguyen Vu Thuy HuongManaging Director

Mr. Bui The TanManaging Director

Ms. Hoang Viet PhuongDirector - Institutional Research & Investment Advisory

Mr. Nguyen Duc Hung LinhDirector - Retails Research & Investment Advisory

Mr. Pham Ngoc BichManaging DirectorInstitutional Sales

Ms. Do Thi Thanh ThuyDirectorBusiness Development

Mr. Mai Hoang Khanh MinhDirector - Equity Sales

Ms. Hoang Thi XuanDirector - Operations

Ms. Ngo Thi Thanh Tam Deputy Director - Corporate Communications

Mr. Bui Viet DungCIO

Ms. Tran Thi Huong QuyenDirector - Administration

Ms. Than Hien AnhCOO - Managing Director, Corporate Communications

Ms. Dang Hong NgocActing CPO

EXECUTIVE BOARD

Ms. Dao Nhat MaiDirector - Nguyen Cong Tru Branch

Mr. Nguyen Chi TrungDirector - Hai Phong Branch

Mr. Phan Ngoc SonDirector - Nha Trang Branch

Mr. Than Duc CuongDeputy Director - Tran Binh Trong Transaction Office

Mr. Vu Van HoanAssociate Director - My Dinh Branch

Mr. Lam Thien PhiDirector - Hong Bang Transaction Office

Ms. Tran Thi ThuyDirector - Hanoi Branch

Mr. Huynh Thanh NamDirector - Vung Tau Branch

KEY PERSONS AT BRANCHES AND TRANSACTION OFFICES

2322

Mr. Pham Truong SonDeputy CEO

IIBUSINESS ENVIRONMENT

AND PROSPECTS2011 Economy Overview 26

2012 Outlook 32

2726

2011 MACRO - ECONOMICSBOTH INFLATION AND MONETARY POLICY IN PLAY

2011 was a very difficult year for Vietnam economy, particularly because of high inflation. To control the high inflation situation, the Government implemented a tightening monetary policy in order to manage the economy. This was the main cause of the significant changes in the key macro-economic indicators during 2011.

Soaring inflation kept interest rates at an elevating levelIn 2011, CPI rose 18.13% versus 2010 (2011 average CPI grew 18.58% YoY), which was double the Government’s initial target for the year. Top 4 leading movers in CPI basket were Foods and Foodstuff (24.8%), Education (20.41%), Transportation (19.04%) and Housing & Construction Materials (17.29%). If Food and Foodstuff had not been accounted, CPI would have risen only about 7.8% in 2011. 2011 CPI followed an abnormal trend compared with previous years, as price levels rose after the Tet holiday and then stabilized at the end of the year. The abrupt hike in utilities prices, primarily electricity rates and petrol prices and the 9% currency depreciation in February were the main reasons for this unusual trend.

Monetary policy played a too large roleTo curb high inflation, State Bank of Vietnam (SBV) applied a tightening monetary policy with a series of initiatives: increased policy interest rates with OMO interest rates as a major policy rate, which was raised 6 times; the refinancing rate was also used, but mostly after each OMO rate revision; non-production lending limitation; establishment of a number of administrative tools including imposing a 14% ceiling deposit interest rate, a firm control of gold bar trading activities and the forex market; reduction of credit growth in 2011.

Particularly in early 2011, some commercial banks often breached regulations with respect to the ceiling interest rate and pushed up deposit rates to around 20%. Interbank interest rates sometimes climbed to a peak of 30-40% for small banks, which used short term deposits as the main source of funds to finance medium and long term loans. Consequently, SBV had to trigger a restructuring plan in the banking industry in order to resolve the liquidity shortage issue.

2011 ECONOMY

OVERVIEWOVERVIEW

2011 ECONOMY OVERVIEW

26

Growth rate (%)

2009-2011 CPI breakdown by groups of goods and merchandise

11/20

09

03/20

10

07/20

10

11/20

10

03/20

11

07/20

11

11/20

11

25

20

15

10

5

0

-5

Other Goods and ServicesCulture, Sport and EntertainmentEducationPost and telecommunicationsTransportation

ersonal CareHousehold Equipments & AppliancesHousing and Construction MaterialsGament, Hats and FootwearDrinking and SmokingMeal & Drinking OutsideFoodstuffFood

Source: SSI Research

2928

GDP growth rate slowed down, retail sales weakened and inventory piled upThe Government initially targeted GDP growth rate of 6-6.5% and then lowered it to 6%. 2011 actual GDP came out at 5.89% YoY, in line with our expectations. However, 2011 stock market was not very sensitive to the GDP target. Macro-economic stability was the priority of the Government, in order to maintain the confidence of local and foreign investors.

The industrial and construction sectors were poor performers; especially the construction sector suffered negative growth in 2011 and was particularly hard hit in Q4, during a traditionally busiest season of the year. The downturn was the result of the tightening monetary policy with high lending interest rates, causing the real estate market to stagnate and forced some private investments to be out of business. On the other hand, agriculture sector growth picked up during the year due to favorable weather and improved productivity in rice production and fisheries farming.

Industrial production index, based on a new calculation method implemented since June 2011 edged up only 6.8% YoY on average, after growing 7.1% and 9.3% YoY in 2009 and 2010, respectively. In major subsectors, including Oil and Gas, Cement, Steel and Pharmaceuticals, the slowdown was caused by a weak demand and resulted in a pile-up of inventories (also seen in retail sales).


Credit growth (YoY) and OMO rate

01/2010

03/2010

05/2010

07/2010

09/2010

11/2010

01/2011

03/2011

05/2011

07/2011

09/2011

11/2011

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

Source: ReutersCredit growth (YoY) OMO rate

Retail sale growth at current price and adjusted inflation from 2008-2011

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.000%

0.00%

Source: GSOCurrent price Inflation-adjusted

05/20

0807

/2008

09/20

0811

/2008

01/20

0903

/2009

05/20

0907

/2009

09/20

0911

/2009

01/20

1003

/2010

05/20

1007

/2010

09/20

1011

/2010

01/20

1103

/2011

05/20

1107

/2011

09/20

1111

/2011

Growth rate (%)

GDP growth by sectors 2004-2011

14.00%

12.00%

10.00%

9.00%

8.00%

4.00%

2.00%

0.00%

-2.00%

Source: GSO

Real GDP YoY

Agriculture

Industry & Construction

Construction

Service

09/20

04

01/20

05

05/20

05

09/20

05

01/20

06

05/20

06

09/20

06

01/20

07

05/20

07

09/20

07

01/20

08

05/20

08

09/20

08

01/20

09

01/20

10

05/20

09

09/20

09

05/20

10

09/20

10

01/20

11

05/20

11

09/20

11

Growth rate (%)

Industrial Production Index and its YTD growth in 2011

12%

10%

8%

6%

4%

2%

0%

200.0180.0160.0140.0120.0100.080.060.040.020.00.0

Source: GSOYTD Growth

IIP

IIP

01/2011 03/2011 05/2011 07/2011 09/2011 11/2011

Growth rate (%)

3130

2011 VIETNAM STOCK MARKET

2011 Stock market: Back to 2006 levelIn 2011, VNI-Index decreased by 27.7% from 485.97 to 351.55, back to 2006 level just before the market reached a peak of 1,158 on 13 March, 2007.

Liquidity on the stock market also dropped in 2011 with average daily trading volume of USD 30.8 million on HOSE. Roughly 50% of daily trading volume belonged to 20 big cap stocks out of 302 stocks listed in HOSE.

Reducing confidence of investors in the stock market caused the stock prices to slump quicker than the decline in profit of listed companies. In fact, the reduction in profit of listed companies began in Q2 2011 and will likely last until Q1 2012, creating the record of lowest PE and PB. According to SSI, on 17 January, 2012 estimated market index was 7.22x comparing with 7.94x in 2011, 10.71x in 2010 and 12.55x in 2009.

Bond marketIn 2011, the issuance of government bonds and corporate bonds moved in opposite directions.

There was an improvement in government bond issuance. In 2011, the total volume of government bonds and government-guaranteed bonds which were successfully auctioned was VND 81,715 billion, accounting for 42.77% of the volume of auctioned bonds. This was a significant improvement compared to similar ratio of 32.2% in 2010. The winning rate was at a low level and formed the declining trend. The 5-year bond yield, for instance, reached a peak at 13.2% in Q2 2011 and declined to 12.15% in Q4 2011.

In 2011, there were more than 150 government and government guaranteed bond issuances, accounting for VND 191,050 billion. The total value of expired government and government guaranteed bonds during the year was VND 46,021 billion.

The volume of successful auctioned bonds was higher than in 2010 but the secondary trading activity contracted. While 2010 total trading volume surged over VND 90,000 billion with the average trading volume of VND 490 billion per session, 2011 volume were VND 87,000 billion and VND 240 billion respectively.

Corporate bonds diminished strongly in terms of quantity and volume: The mobilized capital was estimated at about VND 7,000 billion in 2011, equal to 12.5% of it in 2010 (source: Vietnam Bond Market Association – VBMA). The contraction of the bond market in 2010 resulted from a number of reasons including the global debt crisis and the global economic slowdown which had significant effect on the demand for investments in bonds; the pressure from the huge volume of expiring bonds along with the high budget deficit and high inflation rate; tightening monetary policy; worsening of transparency of information in the market due to the purchase of corporate bonds as a way to go around the cap limit on credit growth imposed by bank regulators.


Source: Bloomberg200920082007 2010 2011 Year

90

80

70

60

50

40

30

20

10

0

Average Daily Trading Volume on HOSE from 2007-2011

Mil USD

15/02/2011

15/03/2011

15/04/2011

15/05/2011

15/06/2011

15/07/2011

15/08/2011

15/09/2011

15/10/2011

15/11/2011

13.50%

13.00%

12.50%

11.50%

11.00%

10.50%

10.00%

Winning auctioned interest rate for the term of 5 years bond (2011)

Source: Auction’s results at HNX

Interest rate

11.20%

11.90%

13.20%

12.10%

12.50%

12.10%

12.15%

Source: SSI ResearchVolume Vn-Index

Vn-Index Trading volume (number of shares)

2011 Stock Market

04/01/2011

04/02/2011

04/03/2011

04/04/2011

04/05/2011

04/06/2011

04/07/2011

04/08/2011

04/09/2011

04/10/2011

04/11/2011

04/12/2011

04/01/2012

600

500

400

300

80,000,000

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0

3332

2012 OUTLOOK2012 OUTLOOK

2012 OUTLOOK

MACRO - ECONOMY2012 YEAR WILL CONTINUE TO BE A CHALLENGING YEAR FOR THE ECONOMY

2011 Vietnam’s economy was somewhat similar to what happened in 2008 for the following reasons: GDP growth declined, construction sector growth was almost flat; high inflation rate which was almost 20%, State bank of Vietnam raised interest rates, causing deposit interest rates to escalate consequently, depositors were able to negotiate interest rates with banks, gasoline and foodstuff prices were again major leading movers in CPI; demand was quite weak with single digit inflation-adjusted retail sale growth; currency depreciated about 10% and gold price was quite volatile.

If the year of 2008 had some similarities to the year of 2011, would the year of 2012 be a replica of the year of 2009? SSI forecasts the 2012 economy will suffer more challenge than 2009 one because quantitative easing program and tightening economy policy will be impossible to be reapplied globally.

Public investment will reduce in 2012. SSI believes 2012 public investments cannot improve much and under stricter investment criteria by the Government. Private sector role would slowly expand, either in the form of PPP or the stock market. This is a positive signal as the ICOR rate in the economy could be reduced, as the private sector have been more efficient than the public sector. However, the efficiency of investments will not likely increase in the short term.

Inflation has been on the downtrend. We see the following impacts on inflation in 2012, including a lower pressure from commodity prices; an increase in basic salary of about 26% from May 2012; an increase in electricity prices; a higher credit growth target in 2012 (15%); no potential fiscal stimulus by the Government and possible contraction in Government spendings. Existing pressures on consumer prices are less serious than they were in 2011 as the price increase happened primarily this year. SSI now expects 2012 CPI growth to be lower than in 2011, but still much higher than in 2009 when CPI only rose modestly by 6.52%.

2012 Credit growth target will be at 15% after the lowest credit growth rate at 10.9% in 2011. In fact, 2012 credit growth target is much more modest than in 2009 (37.73%), at which time a 4% interest rate subsidy was provided by the Government. In 2012, some small banks will suffer high bad debts and liquidity difficulties. Consequently, high credit growth such as in 2009 will not be feasible. Liquidity supports will likely be provided to some selected groups.

Banking sector and SOEs are the main targets of government restructuring scheme. The scheme has some differences from the one announced in 2009. The restructuring scheme will be more challenging and will last longer. Additionally, property market recently suffers many difficulties. For the first time in history, housing price in Hanoi decreased and this trend continues without any positive signals of market recovery. The banking reform started in December 2011 and may take up to 3 years to complete. The classification of asset quality in banking system will be the most challenge in the reform.

32

3534

SOE restructuring scheme: According to the Ministry of Planning & Investment, total investments in non-core business of 11 largest corporates reached VND 19,500 billion (nearly US$1 billion). More specifically, Petro Vietnam has the largest investments in non-core businesses (VND 6,708 billion), followed by Rubber Corporation (VND 3,848 billion). All investments in non-core business must be divested by SOE groups by 2015.

There are some other important aspects of 2012 economy, including:

Trade deficit: Exports might face some difficulties in 2012, including affected sectors such as textiles and garment, footwear and rice. For the first two sectors, salary and input prices are rising (as we are dependent on imports of raw materials) and global demand could be weaker, particularly in US, EU and Japan. The inevitable global downturn may occur and trading growth will be lower than that in 2011, estimatedly.

Gold exports partly caused a decline in the trade deficit since July 2011. Main factors affecting imports in 2012 include: (1) gold export value might be lower than gold import one; (2) downward pressure on imports resulting from weak domestic demand. In fact, many economy sectors depend heavily on imported raw materials (50-60% of imports are machineries, materials and other input for production/export). Trade deficit decline might not be a positive thing at all.

Overall, SSI expects the trade deficit to widen in 2012. Imports might be re-emerged again in terms of nominal value while trading increases and import growth rate is higher than export growth rate.

Exchange rate: SBV moved to a flexible mechanism in dealing with exchange rates and a one-time large depreciation in 2011 may not occur and the depreciation would decline step by step. The SBV governor announced a 3% depreciation target for VND.

2011’s balance of payment improved thanks to a lower trade deficit, higher remittances (around US$9 billion, despite of the loss of some large labor markets) and stable FDI disbursements. Gold and USD trading would be more strictly controlled in 2012 to have positive impact on exchange rate although this action can put more pressure on the official import channel of gold.

More importantly, the evolution of inflation will need close monitoring because it traditionally has the largest impact on the exchange rate.

Interest rates: Vietnamese enterprises were hardly hit by high lending rates and weak demand from the vast majority of economic sectors in 2011. There will be little chance for fiscal stimulus by the government but support for important business lines, such as agriculture, exports related sectors or even some sub-sectors of real estate may be available.

Inflation pressure eased of late 2011, thanks to the tight monetary policy as well as the downtrend in global commodities prices, however pressures still exist.

Lowering interest rates might not happen quickly, due to the problems in the banking sector. Within the easing mode in monetary policies around the world, State Bank of Vietnam already cut policy interest rates by 1% in March 2012 and will likely make another 1% as soon as inflation trends allow such cut. There will be a lag for the rate cuts to become effective, as it would take some time for enterprises to get access to credits at an affordable interest rate, given the continued weakness in the economy.

SSI forecasts a modest outlook for Vietnam’s economy in 2012 as the restructuring process may take time and another global downturn is not impossible. In the medium term, interest rates may gradually reduce in support of economic growth, while inflation pressures will likely decline for a more sustainable development of economy.

2012 OUTLOOK

2012 OUTLOOK

3736

2012 STOCK MARKET OUTLOOK

Stock market: Be cautious with investment decisionsSSI believes that an aggressive monetary easing policy or a generous stimulus packages as witnessed in 2008-2009 will unlikely happen again. On the contrary, the government likely to adopt a prudent monetary policy and any loosening monetary policy in Q2 2012 would only be temporary and limited. Therefore, 2012 is expected to be a special year with following themes:

Banking reform: This reform directly relates to vital question from investors on when and how interest rate can be reduced. In fact, we see the banking reform as the base for a sustainable reduction in interest rate. From SSI point of view, the reform will include 3 phases: (1) classification of bank health according to its financial position, (2) increase in M&A activity in banking sector and, (3) recapitalization of banks (this phase will go together with M&A activity). The reform will likely last for several years and we are just in the early stage of such reforms.

Liquidity issue will remain in 2012 in banking system: As current Loan-to-Deposit ratio (LDR) of banking system has remained high at around 100%, so the chance for high credit growth is low while this is the key earning driver for banks. Attracting deposits in such a tightened monetary policy environment would create liquidity difficulties. Liquidity can be criteria for SBV to implement stress-tests and force the M&A process.

Interest rate reduction will be among the key positive catalysts that the market expects. However, under liquidity difficulties and banking reform, it is very difficult to implement for an easing in monetary policy in the half year of 2012. The first expected move may occur in Q2 2012 in which State – owned commercial banks will gradually reduce lending rates for selective borrowers.

SOE restructuring: While the total credits to SOEs account for a large proportion of total credits in the economy, the restructuring scheme will have the following impacts on the market: (1) the market will require time and resources to absorb the divestment from SOEs, (2) the process may create additional pressures to cash flows of SOEs and delay their CAPEX plans in 2012, (3) the scheme will improve the efficiency of public investment sector in the long-term.

A number of close-end funds may disinvest in 2012: This will add selling pressure in the market although this is an opportunity for institutional investors to purchase additional shares at current low market value.

Our 2012 forecast suggests 2012 P/E of 61 companies in research with market cap accounting for over 70% of total market cap was 7.22x on 17 January, 2012 or 6.10x excluding MSN, VIC and BVH.

The low valuation did not mean that we have hit the market bottom as the market is also influenced by other factors as mentioned above. Regarding earning, the vast majority of companies know that they are in a challenging business environment; therefore, they propose very conservative objectives for 2012.

The low valuation of the market could be an opportunity for long-term investors once the banking issues can be resolved and the confidence of investors is gained back. When interest rates reduce, investors will look for alternative investment forms, in which equity is a great choice as the market values were low even lower than their book values.

Therefore, M&A will become more active, especially in both banking and real estate sectors and will be the key driver for stock prices.

While we keep a conservative view on the market due to mentioned reasons, Consumer Staple, Pharmaceuticals and Agriculture sectors will continue to be our favorite sectors at this time based on high sustainability and stable domestic demand.

Fast growth in bond market is unlikelyHoping to boost transparency and effectiveness in bond market management, government bodies have been trying to initiate more interactions between VBMA and market participants and government bodies. In addition, Ministry of Finance has restructured the bond types/trading products and market participants (implementation of primary dealer mechanism). Based on these initiatives, the bond market has more potential for further development.

However, we believe that in 2012, the bond market might not enjoy high growth due to ongoing difficulties:• The State Bank of Vietnam continues to tighten monetary policy;• More stringent regulations on credit activities relating to corporate bonds; • Limited market participants; • Continued concern for forex risk for frustrated foreign investors; • Transparency risk among corporates and the absence of a rating agency for

bond issuers in Vietnam.

2012 OUTLOOK

The low valuation of the market should be an opportunity for long term investors because prices of many stocks were much lower than their book values.

IIIBUSINESS

PERFORMANCESecurities Services 40Investment Banking 46 Asset Management 52

Treasury 56

4140

SECURITIESSERVICES

SECURITIESSERVICES

2011 HIGHLIGHTS Maintained SSI’s No.1 position in brokerage market share on HOSE.

Continued dominating the foreign investors’ brokerage segment with market share of 38.12%.

Awarded “Best Broker in Vietnam” for four consecutive years (2008, 2009, 2010, 2011) by Finance Asia, a prestigious and professional magazine.

2011 OPERATING RESULTS

Prolonged decline and sluggish condition of the local market in background of

difficult domestic and oversea economies, accompanied by unimpressive business

results of many listed companies in 2011 negatively affected investors’ sentiment.

In such a challenging business environment, SSI Securities Services timely applied

synchronized measurements and policies to weather through difficulties.

Positive results in 2011 reaffirmed SSI Brokerage Services’ position and its

effort – an inspiration for the Brokerage Services team during the tough market

condition

Market trading value plunged 60% in 2011 compared to 2010. However,

transaction value through SSI only decreased by 40% respectively, 20% lower

than market’s decline. Furthermore, given the fact that sales revenues of many

securities companies were not sufficient to offset costs, SSI’s positive returns

in the Securities Services business and related value added services have

demonstrated the appropriateness and timely of its applied measures, such as

systematic policies to constantly improve service quality to clients, product

diversification to create multiple sources of income, suitable employee policy for

brokers in each stage of market development and implementation of strict cost and

efficiency control. In terms of revenue structure of SSI Securities Services in 2011,

brokerage services played a key role in generating revenues, financial service

products also contributed considerably due to high interest rate level in 2011.

Maintaining the leader position in brokerage market share on HOSE for stocks,

investment fund certificates and bonds throughout 2011

As the local market faced increased difficulties, competition among securities

companies also became more intense. Despite such challenging environment, SSI

dominated 13.21% in brokerage market share on HOSE for stocks and investment

fund certificates, 39.33% respectively for bonds in 2011. These outstanding

figures reaffirmed investors’ confidence and loyalty to SSI.

SSI has always been recognized and highly regarded by clients for efficient trading

execution of large orders with practices and procedures in accordance with strict

international standards.

SECURITIES SERVICES

40

4342

SSI HBBS BVSC FPTS VPBS GLS BSC GBVS HSC SME

39.33895%

25.54316%

18.816666%

10.02973

5.56599%

0.63237%

0.03293%0.02770%

0.01249%0.00002%

45.00000%

40.00000%

35.00000%

30.00000%

25.00000%

20.00000%

15.00000%

10.00000%

5.00000%

0.00000%

Top 10 securities companies in brokerage market share for bondslisted on HOSE in 2011

Source: Hochiminh Stock Exchange.

SSI SHC SBS TLS ACBS VSC KEVS FPTS BVSC VNDS

13.21%

8.15%

6.05%5.46%

5.00%3.99% 3.68% 3.34%

3.07% 2.44%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

Top 10 securities companies in brokerage market share for stock andinvestment fund certificates listed on HOSE in 2011

Source: Hochiminh Stock Exchange.

However, SSI brokerage market share on HNX slipped in ranking to No. 6 in 2011 with market share of 3.73%, lower than the year’s target. This result could be explained as institutional investors accounted for a significant proportion of SSI’s transaction value while this particular type of investor, especially foreign institutional investors who aimed at investing long-term and in fundamental stocks, did not show keen interests on stocks listed on HNX. SSI Research and Investment Advisory Team were also conservative in our investment views for 2011 and SSI Retail Brokerage segment was not able to achieve desired performance for the year.

Restructuring SSI Securities Services coupled with boosting development of supporting tools aimed at bringing more investment convenience and efficient supports to clients

In 2011, SSI Securities Services separated the division of Research and Investment Advisory Department into Institutional Client Research segment (Institutional Research) and the Retail Client Research segment (Retailed Research). The restructuring enabled SSI to closely approach and better understand our clients’ demands and from there, be able to timely develop and

introduce new products suitable for the constantly developing market. SSI released 5 more research products for our institutional clients, bringing the total number of research products for institutional clients up to 10 different types of reports and received very positive feedbacks. As for the retail segment, SSI also focused on developing customized products to serve our large and frequently trading individual clients, namely, daily reports with timely market news and investment recommendations. With unceasing efforts, SSI Research and Investment Advisory continued to lead the market with our system of professional and diversified report products.

Besides promoting research and investment advisory services, SSI emphasized on the development of innovative e-trading tools to provide clients with speedy trading via friendly applications. In 2011, clients who utilized our E-trading products surged 30% across all client segments compared to 2010. This is a motivation for SSI to continue developing this trading channel in the future.

Strategy of SSI Securities Services focused on continuous expansion of client network and maintaining current revenue structure in the tough market condition

In 2011, SSI faced difficulties in generating new clients due to weak investors’ confidence in the local market. Although the number of new accounts opened in 2011 was only 51% of the figure in 2010, the number of institutional accounts surged compared to 2010, reflecting the efforts and effective operation of SSI’s newly established Institutional Sales team in the year. In parallel with the focus on client expansion, SSI Securities Services was able to maintain brokerage revenue structure with the ratio of 60:40 between institutional and retail clients in 2011, among that, foreign clients accounted for over 50%. These figures once again reaffirmed SSI’s prestige and leading position among foreign institutions, of which, many are renowned financial institutions such as Deutsche Bank London, Van Eck, KITMC, Daiwa, Templeton, Horizon, Credit Suisse, Lion Capital, Fullerton, Prudential Vietnam, Société Générale, Morgan Stanley, HSBC, CLSA, Manulife Vietnam, etc.

SSI Services securities was awarded “Best Broker in Vietnam” for four consecutive years (2008, 2009, 2010, 2011) by Finance Asia, a prestigious and professional magazine

2011 was the 4th consecutive year SSI Securities Services was awarded by Finance Asia for Best Broker in Vietnam, reflecting international institutions’ trust and confidence in SSI Securities Services. The award is a great motivation as well as a true challenge, demanding SSI Securities Services to constantly develop and improve in service quality to meet and even lead the development of the market as well as to continue to affirm SSI’s leading position and prestige among local and foreign investors.

SECURITIES SERVICES

4544

Promotion of risk management and applications to control risk.Coupled with enhancement in practicability and efficiency of operating procedures, SSI shall continue to perform well in risk management and shall promote investments in technology and development of support systems to better serve brokers in trading and minimize risks arising from trade execution.

Standardization of operation models of SSI’s branches and transaction offices in the direction of operational restructuring aims at ensuring business operation to be in consistent with company’s objectives, is economic efficient and suitable for current market situation.

Human resources are the most important factor for SSI to achieve the objectives set out for our Securities Services business.SSI Securities Services has always aimed at building the image of a professional team of investment advisors and brokers to offer clients the best services. Apart from highly selective recruitments, SSI Securities Services constantly provides various training courses to update and enhance our employees in specialized knowledge, soft skills as well as working ethics. Fieldtrips and study courses in which SSI organizes in cooperation with our foreign partners shall be further emphasized to provide our employees with unique and beneficial learning and experiencing opportunities of the securities market, financial products and services as well as trading systems and platforms.

2012 DEVELOPMENT PLAN

Maintaining No. 1 position in brokerage market share on HOSE and top 10 position on HNX, in which SSI continues to dominate the foreign investors’ brokerage segment with market share of over 35% is the first and foremost important target for SSI Securities Services in 2012. Being well-awared that local and global economies still contain various uncertainties and challenges, SSI aims at implementing consistent strategies with strong coordination between synchronized client policies and diversified products and services on the basis of advanced technology and strict risk management.

Unceasing expansion of domestic and foreign client network. Being able to develop and maintain a vast client-base is one of the prerequisites to guarantee the successful operation of SSI Securities Services. Besides current policies to ensure that existing clients are well-taken care of, SSI shall selectively expand new clients via median organizations and partners as well as our professional team of brokers.

The development and expansion of foreign clients will continue to hold priority and remain as core strength of SSI. SSI shall focus on expansion of new foreign clients via median organizations of potential markets such as America, Japan, Europe, Hong Kong, Singapore, etc. and promoting Vietnam’s financial market side-by-side along with our international partners. With new legal provisions in place allowing investors to open multiple trading accounts at different securities companies, SSI has also been able to reach out to and provide services to existing clients of other securities companies.

Boosting development of investment advisory and financial products as well as E-trading and Contact Center systems to maximize SSI’s capability to meet clients’ demands and escalate sales revenues for SSI Securities Services. In particular, investment advisory activities will continue to be enhanced in both quality and variety of reports. A close cooperation with our brokers will help us efficiently distribute our products to clients. At the same time, SSI Research and Investment Advisory team will also actively expand the product business to generate additional revenues for SSI Securities Services.

SECURITIES SERVICES

4746

2011 HIGHLIGHTSContinued to be the leading Vietnamese Investment Bank.

Being the pioneer in market product by successfully done the first private company's international bond issuance amounted to USD 90 million.

Continuously received prestigious international awards given out by the Finance Asia, the Asset and the Alpha South East Asia.


Due to the impact of the macro economy downturn and the sharp decline of the Vietnamese securities market, SSI Investment Banking’s 2011 performance declined accordingly in comparison to 2010 result, which was considered as a successful year of Investment Banking services. At the end of 2011, SSI had 58 new mandates with the total revenue of VND 44.5 billion booked for 2011. Although the revenue decreased in 2011, SSI Investment Banking has marked our new turn indiversifying new products and services in market.

Maintaining the leading position in the targeted mission of connecting capital from investors to issuers

In an environment where Vietnamese enterprises faced many difficulties in raising capital locally, with SSI Investment Banking’s support, Hoang Anh Gia Lai Joint Stock Company successfully issued USD 90 million bonds to international bond market. This was the first time that a Vietnamese private enterprise mobilized capital successfully in the international market. This success marked a significant milestone for Vietnamese private enterprises to participate in the larger capital market, which requires higher standards in the context of the global capital turmoil in general and many difficulties in the Vietnamese capital market in particular, especially with the low Vietnamese credit rating, the earthquakes in Japan, the tsunamis and the European debt crisis. In addition, the success of this issuance showed the level of interest of international investors in the potential development of Vietnamese corporates and the Vietnamese financial market. The success of this transaction helped SSI to overcome other candidates with larger deals' size from China, Indonesia, India, etc… to receive the prize “Best High Yield Bond Deal of the year in Southeast Asia”, awarded by the Alpha Southeast Asia.

Also in 2011, SSI successfully ran Petrolimex’s Initial Public Offering (IPO) in July when the capital market was under pressure. The success once again confirmed the interest of investors in the upcoming SOEs’ equitizations. The IPO sold 100% of 27.4 million bid shares, equal to VND 412 billion mobilized capitals. The Petrolimex’s IPO, therefore, was considered as the second large transaction amount in the market (the first one belonged to BIDV in December 2011).

Providing customers with various and international - standard - investment banking services

Continuing with the strategy of providing various financial advisory products in accordance with the international standards, in 2011, SSI continued to implement various types of financial advisory services to raise capital in domestic and foreign capital market as follows:

• Convertible bond issuance: SSI successfully mobilized nearly VND 1,400 billion for big listed companies such as Hoang Anh Gia Lai Group (HAG – HOSE), Dabaco Group (DBC – HNX)...

• Bond issuance: Along with Credit Suisse, SSI was the only domestic financial

INVESTMENT BANKING

46

INVESTMENTBANKING

INVESTMENTBANKING

4948

TYPICAL PROJECTS IN 2011Hoang Anh Gia Lai Joint Stock Company Convertible bond issuance advisory in the international market

• Real estate

• Mineral

• Rubber

• Hydropower

• Manufacturing

• Issuance value: USD 90 million

• Nominal interest rate: 9.875%

• Term: 5 years

• First issuance price: USD 95.76 with yield to maturnity 11%

BIDV Insurance Corporation Listing consulting service

• Non-life insurance

• Reinsurance

• Financial investment

• Other activities

• Chartered capital: VND 660 billion

• Listed volume: 66,000,000 shares

• Listed time: September 2011

• Capitalization value (at time of listing): VND 607 billion

Vietnam National Petrolium Group IPO advisory

• Import/export and trading

fuel oil

• Investment in others

companies in the same

industry

• Chartered capital: VND 10,700 billion

• Auction volume: 27,425,933 shares

• Successful average auction price: VND 15,032/share

• Successful rate: 100%

• Mobilized capital volume: VND 412,270,065,000

Dabaco Group Convertible bonds issuance

• Production of animal feed

• Manufacturing and trading

poultry, seafood…

• Total issuing value: VND 254.5 billion

• Issuance price: VND 100,000/bond

• Term: 2 years

• Conversion rate: 70% of the market price at the time of issuance

• Successful rate: 100%

Hung Vuong Seafood JSC M&A service

• Culture seafood for expor-

tation

• Processing aquatic food

and poultry

• Processing aquatic food for

exportation

• Acquirer: Hung Vuong Seafood (HVG)

• Target company: Ben Tre Fishery and Forestry Import and Export

Corporation

• Total deal value: VND 60.2 billion

consultant for the successful issuance of 90 million USD of international bonds to Hoang Anh Gia Lai Joint Stock Company (HAG – HOSE).

• Following on offering (private and public): SSI successfully raised more than 720 billion VND for big and prestigious companies such as Dabaco Group (DBC-HNX), Dai Chau Joint Stock Company (DCS – HNX) etc. In addition, in 2012, SSI will continue to work with a number of large deal size mandates in 2011.

• IPO advisory: SSI consulted for two IPOs with the total value of 413 billion VND.

• Listing consulting service: In 2011, SSI successfully consulted three listed companies, with the total capitalization value counted on 31 Dec 2011 up to VND 541 billion.

• M&A service: The stock value falling sharply in 2011opened up many opportunities for M&A between domestic companies and between foreign investors and potential companies in Vietnam. Therefore, SSI will strengthen and expand the operation of this service. In 2011, SSI has participated in about 10 M&A deals, of which some mandates will be processed in 2012.

Receiving prestigious international awards

2011 was a difficult year for investment banking business in Vietnam. However, with constant efforts, 2011 was the year which marked a numerous prizes to SSI, awarded by many prestigious global institutions as follows.

• The prize “Best Investment Bank in Vietnam” awarded by the FinanceAsia magazine. This is the second consecutive year that SSI received this award.

• The prize “Best Domestic Investment Bank in Vietnam” and “Best Equity House in Vietnam”, awarded by the Asset.

• The prize “ Best Investment Bank in Vietnam”, “Best Bond House in Vietnam” and “Best High Yield Bond Deal of the year in Southeast Asia”, awarded by the Alpha Southeast Asia.

INVESTMENT BANKING

5150


In 2012, SSI will apply simultaneously many solutions to pursue the mission of “Connecting capital to opportunities”, to continue retaining its top position and to promote the development of these activities.

Diversifying services, focusing on professional and high added value services. In 2012, SSI will focus on professional banking services such as restructuring financial consulting services, capital restructuring, M&A, hybrid products, structured product combining equity with fixed in come, etc. In addition, SSI will continue to research and design new and diversified products to meet the increasing demands of customers as well as the demand of the market in order to connect foreign investors to domestic enterprises and to take advantage of capital cash flow from the international market. SSI will focus on consulting services to improve the financial systems and financial management according to the international standards as well as preparation steps to help enterprises raise capital in foreign markets.

M&A activities continue to be the priority. Difficult economic period recently witnessed many ineffective companies. However, there are many good enterprises needing financial support to expand their market share and improve their scales. This fact has led to many opportunities for M&A activities in 2012. SSI, with deep understanding of the operational model, financial management model, corporate finance, long-term advisory experiences and an available resource of domestic customers and foreign investment banks, will attempt to connect between many cooperation needs to bring high benefits to both buyers and sellers.

Focusing on finding customers, that are large-scale, prestigious and sustainable developed enterprises operating in fundamental sectors - the strength of the country, to provide financial products and financial solutions to support their development.

Expanding of cooperation with leading financial institutions such as JP Morgan, Daiwa Securities, Nomura, Credit Suisse, etc. to exchange experiences and to promote investment opportunities, so that SSI can provide clients with many professional financial products according to the international standards.

Investing in the development of human resource is a strategic activity, a foundation to create competitive advantage in harshly business environment among securities companies. Therefore, SSI will focus on training people to help them to have fully qualified expertise, soft skills according to international standards combining with a deep understanding of the local market.

INVESTMENT BANKING

5352

2011 HIGHLIGHTSEntrusted assets increased by VND 768 billion compared to 2010, total assets under SSIAM management up to over VND 3,500 billion.

Funds and portfolios managed by SSIAM over-performed the market, with SSI Vision Fund (SSIVF) remained an efficient local fund.

Disbursement of most of SSI Investment Member Fund (SSIIMF).

Perfection of operation processes and technology infrastructure.

ASSET MANAGEMENT


Stock market recession during 2011 posed challenges to the operations of Fund Managerments in Vietnam. Fund and portfolio management faced various difficulties due to the market’s volatility and illiquidity. Vietnam’s economic difficulties and deteriorating operations by companies refrained local and international investors from making investment before economic recovery. These difficulties significantly impacted capital mobilization during 2011.

In the context of overall market distress, SSI Asset Management Company (SSIAM) managed to make its funds and portfolios perform efficiently, as well as mobilized more capital from SSI and other entrustors. SSIAM achieved certain success during 2011 and paved the way for substantial developments in the coming years.

Revenue growth in difficult market conditionsOvercoming general market hurdles, SSIAM 2011 revenue increased by 10% to 37.2 billion and profit before tax was 5.1 billion (after taking provision for stock impairment). The Company mobilized 768 billion in 2011, raising total assets under management to more than 3,500 billion.

Furthermore, SSIAM actively sought for new investment opportunities, disbursed Funds and portfolios in accordance with approved Investment Plan, and prepared for mobilization of new Fund which included the preparation of technical and technology infrastructure for the coming of Open - ended Fund.

Prudent and long-term investment strategy in fund management resulted in highly efficient operations in 2011 market conditionsFund and portfolio management operations were focused on being prudent, efficient, and long-term growth potential. SSIAM accordingly restructured funds and portfolios under its management. By the end of 2011, NAV of most funds and portfolios managed by SSIAM out-performed the market. In comparison with VN-Index, which decreased by 28% in 2011, SSI Vision Fund (SSIVF) NAV only declined 14%. Portfolios such as Dividend Portfolio and Balanced Portfolio all out-performed VN-Index by 20% - 40%.

ASSETMANAGEMENT

ASSETMANAGEMENT

52

Source: SSIAM

Revenue from Management of Funds and Portfolios

2007 2008 2009 2010 2011 YearBillion VND

908070605040302010

-

5554

Despite difficult market conditions, SSIAM believes that investment opportunities still exist, especially when good companies are trading at low PE, andt have good long - term growth potential. This is evidenced by the fact that during 2011, DSCAP-SSIAM Vietnam Growth Fund (co-managed by Daiwa Corporate Investment Ltd) and SSI Investment Member Fund (SSIIMF) continued to disburse cash for new investments.

Strengthening capital mobilization and investment portfolio managementBy mid of 2011, SSIAM started managing a major part of SSI's investment portfolio, its parent company. Being a seasoned, professional and prestigious fund manager in the market, SSIAM is committed to effectively manage this portfolio in order to increase efficiency and transparency in SSI’s investment activities.

During 2011, SSIAM focused on expanding investment portfolio management product by establishing portfolio management product package SSI Prestige, which targets individual affluent and institutional customers. This product provides customers with all-rounded investment solution, including advisory, financial planning, investment strategy constructing and investment execution...

Upgrading operation processes and technology infrastructureSSIAM remains one of the pioneering fund managers in applying and developing IT in business. The Company successfully developed in-house software of fund and portfolio management and transaction warning, as well as customer care system. This is one important step in the Company’s continuous effort to enhance asset management service and investment efficiency and transparency. This also provides critical technical base for the operation of Open Fund expected to be launched in 2012.


The world in general and Vietnam in particular are still facing many economic difficulties in 2012. This nevertheless opens new investment opportunities, especially when many companies with high development potential are undervalued. A series of regulatory documents will be released in 2012 which will pave the way for long-anticipated products such as: open funds, real-estate trusted funds and stock investment companies. These documents will enable local fund managers to provide new products and services to customers. If combined with more favorable macro-economic conditions of 2012, this will create significant development in mobilizing capital for trust funds and portfolio management, and in the establishment of new funds.

With a view that economic and financial market conditions continue to be difficult in 2012, SSIAM has drawn on 2012 business plan as below:

Safe and flexible investment, developing with companiesIn addion to searching for new investment opportunities and cash imbursement in accordance with planned agenda, SSIAM will continue to enhance its risk management, and manage funds with a long-term and safe view as well as flexibly enough to match with market environment. SSIAM’s investment view is long-term, company-partnering, helping companies to devise substantial business strategies, focusing on core business to strengthen their positions in the sectors that they operate in. This view makes SSIAM believe that portfolios under SSIAM’s management will result in investment efficiency and high returns.

Attracting more trusted assets from institutional customersIn line with the development of the local economy and the financial market, the demand for professional asset managers will be on the rise. SSIAM sees Vietnam remain to be a potential investment point for international investors. With advantages leveraged from parent company SSI, large and extended network of partners and SSIAM’s brand name in the field of asset management, SSIAM will remain to be the choice of local and international customers.

Focusing on high networth individual customer marketHigh networth individual customer market is currently unattended and poses many potentials. SSIAM will, in 2012, continue to perfect and introduce products targeting this kind of customers. The Company will also corporate with commercial banks and insurers to diversify products for these customers.

Resource readiness for Open FundLegal framework has been in place for Open - ended Funds. SSIAM is set to seize opportunities and take early advantages by making human and technical resource ready for the launch of this product in 2012.

ASSET MANAGEMENT

11/2007

12/2007

03/2008

06/2008

09/2008

12/2008

03/2009

06/2009

09/2009

12/2009

01/2010

02/2010

03/2010

04/2010

05/2010

06/2010

07/2010

08/2010

09/2010

10/2010

11/2010

12/2011

01/2011

02/2011

03/2011

04/2011

05/2011

06/2011

07/2011

08/2011

09/2011

10/2011

11/2011

12/2011

Source: NAV reports by Funds

SSIVF NAV movement compared to MAFPF1, PRUBF1, VFMVF1 and VNIndex40%20%0%

-20%-40%-60%-80%

SSIVF MAFPF1 PRUPF1 VFMVF1 VNIdex

5756


In 2011, overcoming fluctuation in interest rate, liquidity constraints in currency market and the decline of the stock market, SSI treasury maintained profitability ratio, contributed to the profitable business results of SSI.

Ensuring liquidity and asset safety for investorsIn 2011, the liquidity in money market was difficult, leading to erratic interest rate changes with high gap between banks and between locations. For over a dozen years, the year 2011 marked interbank bad debts and loss of liquidity, in which banks could not repay loans in the second market. It was also the first time since the establishment of the stock market in 1999 that securities firms lost liquidity capacity and their depository services were stopped. In that situation, the target of managing the investors' asset safely, ensuring to meet timely payment requirement of the customers, was the top priority in the operation of treasury and finance department of SSI.

To accomplish this goal, SSI focused on the selection of banks having high credibility, good liquidity, and outstanding service quality to manage investors’ deposits. In 2011, SSI did not have any delays or lack of money for investors’ payment requests, as well as no need support emergency payment from the indicated payment banks. In particular, SSI did not have any claim related to the deposit management. The business results in 2011 affirmed the efforts to improve operational efficiency in the treasury and finance department in the context which the money market and the stock market were unstable.

Maximizing customers’ benefits through financial productsIn 2011, SSI continued to maintain the investment support services to help customers maximize the efficiency and the profitability of the idle capital, while ensuring the maximum flexibility to use funds for others purposes through the product Investlink with an attractive fixed rates, flexible time and investment procedures.

Customers of SSI also benefited from using margin trading business implemented

TREASURY

TREASURYTREASURY

56

2009 2010 2011Billion VND

500.00450.00400.00350.00300.00250.00200.00150.00100.00

50.00-

Revenue from the Treasury operation

Source: SSI

171.29

473.02 454.55

5958

by the Securities Commission in 2011 because the interest is paid from T+3. This is a complex operation regarding the liquidity regulation due to disbursement, unplanned loan withdrawal, and then it requires SSI to manage efficiently the treasury to optimize all account balance, harmony balance clearing to bring benefit to customers.

Safe financial business and profitable performance, contributing to the overall business results of SSISSI maintained a rich cash amount, which was a considerably profitable source in 2011. This amount of cash was flexibly used in capital investment such as bank deposits, bonds purchase, repo activities, collateral lending, investment cooperation…Besides this cash amount, SSI always maintained a great amount of assets with high liquidity to make provision for liquidity need and to ensure effective financial business, maximize the investment opportunities in the market if necessary.

In the bank deposits operation, with an average cash of VND 1,500 billion, SSI maintained the balance between the plan of capital using and financial investment in appropriate time, selected the best interest rate with banks having high credibility. In reality, although some big banks also faced bad debts in the interbank market, SSI did not suffer any bad debts or late payment from banks/ partners for all type of financial investments. SSI always early identified banks with high liquidity risks via regular evaluation to establish deposits limits.

A large size of equity, rich cash, an effective management brought SSI high revenue from financial business, which was VND 454.4 billion, equal to 53.6% of the total revenue in 2011.

Transferring the majority of SSI’s portfolio to SSIAM to increase the specializationIn mid of 2011, SSI transferred the majority of SSI’s portfolio to SSIAM. Currently, the portfolio in SSI is only VND 2,717 billion, of which the majority is bond and unlisted shares. The company will continue to transfer the remaining categories listed to SSIAM and consider moving the unlisted portfolio to SSIAM as well.


Diversifying product structure, building new and flexible productsThe money market in 2012 tends to have interest rate reduced and strong competition in the development of customer size. SSI aims at diversifying product structure and financial business, building new and flexible products to take advantage of the loan demand as well as capital investment in the market with an optimal interest rate, having reasonable term structure to promote consultancy activities, introducing more efficient products to the customer network and to the partners.

Investing capital with careful viewConcerning about the liquidity risk in some banks, SSI will deploy carefully activities in the treasury and financial business, through evaluation of partners; transaction structure to preserve capital. SSI will continue to perform its important task which is balancing the cash flow to fully maximize the idle capital and simultaneously ensuring the liquidity for SSI and the investors.

TREASURY

IVRISK

MANAGEMENTSummary of Risk Management in SSI

Market RiskCredit Risk

Liquidity RiskOperational Risk

Information Technology RiskCompliance Risk

Branding RiskHuman Resource Risk

Legal Risk2012 Development Plan

6263646566666768697071

6362

RISK MANAGEMENT

SUMMARY OF SSI RISK MANAGEMENT

In the situation of instability in the economy and financial markets, SSI has emphasized risk management to ensure secure operation of the business. At SSI, risk management is performed from top management level (Board of Directors, Board of Management) to each department level, in conjunction with inspection and periodic controls by the Legal & Compliance Department and the Internal Audit Department. Through the establishment of risk management policy and process covering the entire operation, SSI has reduced the negative impacts which could have affected the financial situation and business results of the company.

SSI’s Risk Management Model

BOARD OF DIRECTORS, BOARD OF MANAGEMENT • Establish Business Strategy and Risk Management Policy

DIRECTOR OF RISK MANAGEMENT, HEAD OF DEPARTMENT

• Identify Risks• Develop Risk Management Models and Processes• Monitor Risk Management Processes

DEPARTMENTS• Implement the Risk Management Process to reduce Risk• Uncover new Risks• Contribute to development of Risk Management System

MARKET RISK

Market risk is related to potential changes in factors in the economy in general and particularly in the financial markets including changes in fiscal policy, monetary policy and market management regulations of the Government, which can have a direct effect on the operations of SSI. These changes are seen in factors such as interest rates, the exchange rate, level of risk, market liquidity, credit availability, cost of funds…, which can lead to the fluctuations in the value of financial investments. The investments of SSI in securities and other investment products cannot avoid the risk related to reduced market prices, interest rate changes or a lack of liquidity.

Regarding market risk, SSI uses scenario development and analyses to quantify the impact of market risk on SSI financial assets including loans. Therefore, SSI sets the highest acceptable level of risk based on the characteristics of each type of risk and the appropriate risk prevention plans to minimize potential losses.

Market risks will directly affect SSI through two major activities as follows:

Deposit investment: Risk will arise in case of a gap in cash flows, when short-term funding is invested for longer term while interest rates fluctuate. SSI manages this kind of risk by matching funding and bank deposits through appropriate maturity allocation to minimize the potential impact of interest rate movements. As a result in 2011, SSI did not incur any losses in these activities.

Stock investment: This activity bears a high level of risk when the stock prices decrease in comparison with purchase cost. Especially in 2011, according to the SSI’s assessment, the economy was strongly affected by inflation and the exchange rate; therefore SSI has carefully identified investment points and always had a backup plan such as focusing on value investing strategy, in industry sectors which were less affected by the economic crisis and on mobilizing funds for investments abroad…

SSI has identified that in 2012 and in the subsequent years, the on-going restructuring of the economy will create more risks in general. Consequently, SSI maintains a prudent investment approach, orients towards value investing principles and focuses on becoming a strategic investor in companies that have a strong fundamental, good potential growth with the objective of supporting these companies in their business development plans.

6564

CREDIT RISK

Credit risk affects directly the business operations and the profitability of SSI through direct effects on three activities including: loan/deposits, margin financing and bond investments.

Lending/deposit risk arises when partners cannot complete their settlement obligations. However, in 2011, although money markets faced liquidity problems, SSI did not have any bad debts or delays in loan payments. To achieve this result, SSI have been diversifying counterparty risk exposures, rating the credit strengths of customers and counterparties based on market information, customers’ information, and past experience in dealing with them. SSI allocated credit limits for each counterparty, each customer and these quota limits have been monitored through daily reports. Regrading counterparties in bank deposits, SSI established a series of evaluation criteria to assess the credit risk of financial institutions and only cooperated with carefully selected and reputable counterparties that have strong financial situation.

Margin financing risk arises when customers do not provide additional asset collaterals or do not reduce debts when the market value of securities held on margin drops below the loan value. In the risk management of margin financing, SSI performs a series of coordinated tools including the establishment of reserves in compliance with the State Securities Commission requirements. In addition, the list of stocks held on margin must meet certain pre-established risk management standards including liquidity, price volatility and stock valuations, based on analysis reports covering the financial situation of the related company. Customers using margin financing service must qualify according to certain criteria and subject to loan management monitoring and warning signals in accordance with SSI pre-established principles. SSI uses an automatic quota management and monitoring system through daily reports. SSI maintains at all times, a prudent limit on advances in margin financing. By performing a series of coordinated measures, as mentioned above, in 2011, SSI did not suffer any losses of capital and the balance of total margin loans was maintained between 6% and 10% of total equity.

Bond investment risk arises when a bond issuer suffers from liquidity shortage, which could lead to a drop in liquidity of the bond on the market. To mitigate these risks, SSI formed an Investment Committee to review all investment proposals before implementation. Before that, the investment proposal was simply submitted based on an assessment analysis of the business. Since investment decisions require the consensus of the Investment Committee members, SSI has been able to minimize potential risk. In 2011, SSI did not expand its bond investment portfolio.

LIQUIDITY RISK

Liquidity risk occurs when SSI loses the ability to satisfy debt obligations upon maturity of these debts. SSI liquidity could be impaired in case it cannot react to major events on the market in general or events affecting a particular asset. Besides, if many other investors are also looking to sell the same assets at the same time, the ability to liquidate assets to generate liquidity of SSI will be negatively affected.

Liquidity risk has a direct impact on lending/deposit activities and cash flow management of SSI. In particular, the risk of lending/deposits activities occurs when the counterparties have liquidity difficulties and do not pay on time as stated in the credit risk management program.

Risk in cash flow management occurs when SSI has difficulty in paying on time due to errors in cash flow management. In 2011, SSI did not have this liquidity problem thanks to the use of an efficient liquidity risk management practice. In fact, the company implemented a strictly discipline of internal payment operations. The cash balance is performed daily with general information from all revenues – expenditures, projected revenues – projected expenditures. Cash flow statements are also used as a basis for the Treasury department in making decisions about the terms of bank deposits.

In addition, SSI always maintains a reasonable ratio of assets versus liabilities, applies basic principles of liquidity risk management including the investment in liquid assets. To assure the ability to arrange short term funding, SSI keeps an asset portfolio that includes Cash, Bank Deposits, Government bonds and other valuable papers that have high liquidity. In the long term, SSI enjoys credit lines provided by various credit institutions in the market and has overdraft facilities at different banks. The methods to arrange funding, to ensure the solvency of SSI also include the use of derivative instruments such as Repos, Forward transactions, issuing valuable papers to mobilize capital in the medium and long term. In recent years, SSI has offered financial products to individual customers to achieve two goals in parallel: diversify product offerings to meet customer needs and increase liquidity.

RISK MANAGEMENT

6766

OPERATIONAL RISK

In the conduct of business activities, SSI may face operational risk including the risk of theft or fraud, invalid behavior of employees, illegal transactions or illegal retrieval and storage of information, errors in evaluation and accounting of transactions. These risks may cause SSI to incur financial losses, which could affect the reputation of the company and even could require intervention of the authorities.

To limit operational risk, besides continuous training to improve the level of professionalism of staff, the Risk Management Department has the responsibility to establish compulsory rules such as defining the authorities and responsibilities of each individual, each department; the departments that are responsible for the development of daily business operations, the requirement of cross-checking of all transactions and automation to reduce errors in manual processes. In 2011, SSI has successfully built an Operations Center to control daily activities at branches and transaction offices, which can help reduce operational risk. Operational risk is also controlled through the internal control system, which is presented in the Risk Compliance section of this report.

INFORMATION TECHNOLOGY RISK

Being a brokerage firm, systemic risk and confidentiality of information are always the greatest risks and challenges, which SSI IT team must cope with to ensure two vital elements: highest possible protection of customer information and transactions and rigid daily operations to guarantee peak performance of the system while avoiding any service disruptions. Such disruptions could result in financial damages to both customers and SSI, which could be detrimental to the public image of SSI.

SSI IT Department always performs tight procedures to preserve confidentiality of information and continuously monitors all systems to avoid potential vulnerabilities such as security holes, system intrusions and viruses. SSI also regularly works with leading security firms to get comprehensive assessments of the systems and to develop security strategies to ensure that sound risk management of the IT system is constantly reviewed, revised and updated.

In 2011, SSI accomplished a major milestone in protecting information and controlling risk by automating significant numbers of business processes along with successfully deploying a real-time disaster recovery system. System automation allows SSI to have sophisticated cross checks and consolidations between multiple entities and parties while the disaster recovery system ensures information integrity and business continuity. In 2012, SSI will continue focusing on these areas to achieve higher levels of automation and protection.

COMPLIANCE RISK

Compliance risk is the risk incurred when the company fails to comply with the laws relating to its operation, or the employees of the company fail to comply with the laws or internal regulations of the company. Consequences of the compliance risk could lead to damages in property, reputation; lost of business opportunities or even deprivation of the securities service licenses of the company.

According to SSI’s assessment, 2011 was the year during which there were many potential compliance risks due to the difficult market conditions, which forced the securities firms, employees and investors to look for ways to survive. A case in point is the series of violations at securities firms and their staff as reported on the mass media and the disputes between investors and securities firms. An inspection report by the SSC, which was posted on 8 Feb 2012 of SSC website (www.ssc.gov.vn), noted that "the violations in the market have become more sophisticated, more complex, especially that violations can easily arise in the context of a market in great difficulties”. At SSI, the internal control system which was established for many years is an important component of risk management system. The system consists of 10 employees including 4 employees performing internal audit and 6 employees performing internal control, which encompasses supervision of compliance with laws, procedures and internal regulations. Control processes are conducted on regular basis at all departments to ensure a high level of compliance. The internal control calendar is periodically made to detect and prevent from risks. The reports help all the departments review, revisit business processes and propose measures to overcome shortcomings and to reduce risks.

In an effort to limit Compliance risk, the company management has been enforcing awareness of risks in the entire company. The policies and information from the Board of Management have been diffused to each department through the department head and the information exchange from staffs has been updated to the Board of Management through management meetings or through the company’s intranet. The risk management division reviews regularly the risk assessment of every operation in the company to ensure compliance. All business decisions and processes are cautiously built to promote compliance with the law.

In 2012, the Company plans to continue reviewing and adjusting documents and processes to improve the effectiveness of the internal control systems.

RISK MANAGEMENT

6968

BRANDING RISK

The Branding risk is the loss due to the changes in customer perception about the company. These changes may affect the demand for products and services of the company and could therefore affect the operations of the company. Especially for a financial institution, the risk associated with the spread of information, false rumors, miscommunications about the image of the company could cause unpredictable consequences such as a decrease of the confidence of investors, shareholders and communities, leading to financial losses for SSI.

SSI continues to build and develop strict regulations concerning branding and observes strictly regulations on information disclosure. SSI periodically performs measures to evaluate the “health” as well as the weaknesses of SSI's brand to have plan to cope with these weaknesses. In daily activities, the brand standard of SSI is complied with by the entire SSI team to maintain the professional image of SSI.

In addition, the information disclosure of SSI is always complete, including regular and irregular information, as prescribed by the law, but promptly and pro-actively in case of false information and rumors. The financial information, periodic audited financial statements are also published to the investors to maintain the information transparency, accuracy and timeliness. SSI staffs are proud to uphold the spirit of the brand, they are awared of the value of the brand that SSI has been building and have been acting carefully to assure avoidance of unfortunate risks.

HUMAN RESOURCE RISK

HUMAN RESOURCE RISK

During a period of great difficulties, not only the financial institutions but also the securities firms have high demand of talent employees. Particularly, studies on the labor market recently showed that SSI has been facing risk in HR management as follows:

• The labor market has been short of top managers and experts, particularly in the financial sector. The intense competition for talents may lead to key talents of the Company becoming the object of hunting by foreign financial institutions with strong financial capability.

• The staff turnover in the financial sector is still very high at 13.70% in the six months of 2011, while the average rate of whole market is 8.8% according to the Mercer’s survey findings. Especially, according to the Tower Watson Vietnam studies, this rate reached to 17.8%. This may cause destabilization in the organization of the company.

Facing these potential risks, SSI aims at building competitive remuneration policies to retain talent, while emphasizes training policies as a key factor to improve staff knowledge and to help them fulfill their potentials. SSI will continuously focus on recruitment to attract qualified candidates with experience who are suitable with the long-term development strategy of the company.

Performance appraisal program has been improved constantly due to the increased motivation for exploring power of existing human resources. Moreover, reward policies have been periodically reviewed to keep updated with the long term development plan of the company.

The Company always attempts to create an ideal work environment which focuses on creativeness, friendliness, fairness and favorable conditions to help staff complete their work with high results and also boost their careers, as SSI believes that these are good solutions for the development of human resources. Team building activities have also been promoted by the Company in order to build strong relationships among employees after working hours.

RISK MANAGEMENT

7170

LEGAL RISK

SSI is a securities company operating in a business environment in which the legal systems is in the process of being completed, with many legal documents issued each year, macro policy changes with flexibility in short-term.

In such conditions, some specific risks may arise, for example, legal changes can affect the activities of the company or the company has not kept up with changes in the law or wrongly interprets the law in specific cases…

To limit these legal risks, SSI established the Legal Department, which performs the function of internal lawyer and uses advisory services of professional law firms. Legal Department and consulting units are responsible for updating new legal documents issued to the Board of Directors, Board of Management and the relevant departments; studying the effects of legal documents during its upcoming draft to have a proper preparation. In addition, this department is also responsible for participating in the process of building legal documents in relation to the operations of the Company, by participating in workshops for comments and suggestions for the legal draft documents, in cooperation with the units in the industry, members of professional associations, synthesis of problems arising from the application of existing rules, reporting to the Government and proposing feasible solutions.

In fact, in 2011, the Company has actively completed the restructuring of business activities to be consistent with changes in the law and avoid all damages due to these changes.


SSI has plans for a sustainable development in the long term. The company's market development and the business profit must be within safe limits for customers, shareholders, partners and employees of the company. SSI will always keep its position as a securities firm with the top quality risk management systems and practices.

Currently, SSI is building a risk management system based on the training program of the State Securities Commission and the VIE026 project. This system will cover all risk aspects of SSI.

SSI continues to develop the Risk Management Department with the slogan of independence, expertise and flexibility. The operation of this division will take advantages of the available human resources, especially experienced management human resource, besides the functions of supervision and consultation of the Risk Management Department. To ensure the safety of daily activities, the Risk Management Department plays an important role in helping SSI maintain its current position and for a sustainable development in the future.

RISK MANAGEMENT

VENABLERS

Information Technology 74Human Resource Management 78

Investor Relations 80Corporate Culture 82

Corporate Responsibilities 84

7574

Restructuring to have a compact but highly specialized human resource structureFocusing on human resource as the most important factor, SSI’s IT completed restructuring and refining every single IT’s position in 2011. Each job description was rewritten with clear and unambiguous tasks and responsibilities. Performance matrices were formed to create a fair, competitive and motivated environment. While enforcing strict compliance and discipline in day-to-day operations, IT does promote an open environment where individual’s creativities are encouraged and new technologies are updated constantly via seminars, workshops and trainings.

Maintaining a stable, high performance and secured infrastructure to meet the high demand of daily operationsSSI’s infrastructure including servers, firewalls, network devices and network connections continuously gets upgraded and modernized not only to meet the current demand but also to ensure the capacity for future expansion. In 2011, SSI deployed a central operation control to monitor every single element on the system. The health of system is being checked 24/7 to alert administrators for suspicious and out-of- the-ordinary activities to minimize operational risks that may occur.

Being a securities firm, SSI holds highly sensitive and important information relating to customers’ accounts. SSI puts great efforts into protecting this most valuable asset by implementing strict backup and restore procedures along with constantly monitoring and scanning for potential vulnerabilities such as security holes, intrusions and viruses. Regularly, SSI cooperates with leading IT security firms to evaluate the system and develop overall security strategies.

In 2011, SSI successfully launched the Trading Disaster Recovery (DR) system operating in real-time with the main system. The DR system ensures SSI’s business continuity even if disaster strikes. In 2012, SSI will finalize and release the Business Continuity Planning (BCP) to meet the high standard set by leading securities firms in the world.

Upgrading and developing modern IT system to maximize support to SSI’s growthIn 2011, SSI did a major upgrade to the trading system, doubling its processing power and capacity. Software system also gets developed, updated and upgraded on continuous basis to deliver constant enhancements. SSI is always one of the first companies to comply and pass the tests with the State Securities Commission, Exchanges, Depository and other parties whenever changes occur.

SSI also did a major upgrade in 2011 to the software system that served SSI’s customers via Internet and other channels. Smart Trading, Web Trading, Contact Center and SMS software got new functionalities and utilities to work smarter, faster and more secured. In 2012, SSI will continue focusing on bringing unified and integrated solutions to customers.

INFORMATIONTECHNOLOGY

Tough business condition in 2011 uniquely presented great challenges to the Information Technology system: How to maintain undisrupted, safe and effective operations of the system? How to achieve best possible compliance and risk control? How to continue providing new products and services to satisfy customers's demands? And most importantly: How to do all that with limited investment and resources? In 2011, SSI’s IT totally transformed itself to meet head on with the challenges, and to set a concrete foundation for 2012 and the future.

INFORMATION TECHNOLOGY

7776

Fully realizing the power of the Internet portal, SSI has been focusing on developing and upgrading the website to provide an effective communication channel to customers, shareholders and the public regarding company’s official information. SSI’s web portal also provides investment tools and other useful utilities to help investors with decision making process.

Not only focusing on bringing essential values to customers, SSI also defines IT as the company’s backbone for business operations. Various projects such as Domain consolidation, Exchange system, Intranet on Microsoft SharePoint and Oracle Finance ERP were successfully launched in 2011 to streamline company’s processes and operations. With these well-integrated foundations, SSI is looking forward to 2012 and the years to come to build great products and services to the SSI itself and its customers and partners.

Optimizing processes, automating system and adding risk valuation to IT policy to ensure effectivenessIn the ever changing IT environment, the continuous process of risk valuation is critical to the risk management. In 2012, SSI is placing this process into IT policies to ensure that it will be done correctly, regularly and systematically.

Another crucial item towards the better risk control is to establish clear and rigid operation procedures in order to minimize dependency on particular personnel. SSI’s policy also requires regular check up on human resource backup plan.

In 2011, SSI successfully developed and deployed a software system that automated significant numbers of business processes. The system enabled SSI to have sophisticated and multi-dimensional cross checks and consolidations to impose better risk control. In 2012, SSI will continue directing efforts toward this end.

IT governance SSI continues promoting the strategic role of the Information Technology Committee with the responsibility to consult with the CEO in the planning of Information Technology development strategies and issuing investment decisions on key IT projects and related management and personnel decisions.

The Information Technology Committee also performs the role of monitoring and evaluating the efficiency of the implemented projects, assisting the CIO in the management and operation of the IT personnel system and solving problems which occur during the operation and implementation of projects.

INFORMATION TECHNOLOGY

7978

HUMAN RESOURCE

MANAGEMENT

Recognizing that the core values of the Company is generated from employees, SSI has always focused on building a comprehensive personnel policy in order to create effective, fair, and responsible working environment which advocates creativeness. In 2011, SSI reformed Human Resource management with highlighted activities as follows:

Investing in recruitment, strengthening training and compensation policies to attract and retain talentsRecruitment at SSI follows the procedure closely, with the evaluation criteria are designed to suit each position. Because of need in business development, in 2011, the company hired 61 employees who had good qualifications, graduated from prestigious universities locally as well as abroad, and has achieved professional certification in finance i.e. brokerage and investment etc.

In order to help new employees understand and integrate quickly into the working environment, SSI provided orientation training courses for them to understand the organization and operation of the Company, brand culture, as well as internal regulations and operating procedures relating to their working positions. Beside specialized and compulsory courses relating to professional certificates according to the law, the Company encourages and supports staffs to obtain international financial certificates such as CFA, ACCA as well as advanced training programs for employees in soft skills such as effective communication skills, presentation skills, negotiation skills, etc.. Particularly, in 2011, SSI held professional selling skills training for brokers to enhance customer care. In addition, SSI emphasizes the role of self-learning, and encourages employees to invest time in research, knowledge improvement as well as experience accumulation.

Executing job evaluation and reforming the internal grading systems throughout the Company according to international standards (i.e. Mercer International Position Evaluation) and improving the remuneration policiesIn 2011, SSI developed salary structure based on position evaluation results in accordance with Mercer methodology (i.e. Mercer IPE). Accordingly, the internal hierarchy was reformed according to international standards, enabled the management of personnel policies and benefits to be more effective. The company adjusted remuneration policy based on result of benchmarking against market data especially in financial service industry in 2010-2011. By then, remuneration policy was linked to job requirements and job value, to ensure internal equity and help improve the Company’s competitiveness in the labor market.

With the aim at building a culture of efficiency, SSI has improved performance appraisal system, to ensure recognition of employee contributions and identify the areas that must be addressed or the skills need to be improved to develop appropriate training programs which enhance employees’ improvement in the next coming years. Such evaluation results are the basements for the application of reward policies including salary, bonus, and promotion in order to encourage individuals to attempt to achieve high performance, contributing to the Company’s development.

Improving benefit regimeSSI still keeps additional health insurance for employees with high benefits and good coverage so that employees can concentrate on their work.

In 2011, SSI conducted Employee Stock Ownership Program for key persons to attract, retain and motivate talents and senior staff. Thus, they would shall devote and commit to the development of the Company. In addition, the program also connected labor efficiency with common interests and the development of SSI, sharing success for SSI and staffs now and future .

HUMAN RESOURCE MANAGEMENT

Staff number by education

MasterBachelorDiplomaCollegeHigh School

1%18%73%4%2%2%

Male Female

Over 5045-5040-4535-4030-3525-30

Under 2505 0 100 150

Staff number by gender and ages

Staff ratio by Units

Bussiness Unit Control Units Support Unit

62%

23%

15%

8180

INVESTORRELATIONSSSI respects our valued shareholders and realizes our responsibility to provide and disclose transparent, accurate, adequate and timely information. SSI recognizes the importance of information exchange between the company and our shareholders, which enables our shareholders to better understand SSI’s operations and limit potential arising risks which may negatively affect the company’s image and reputation. With this in mind, SSI always appreciates the significance of investor relations activities and is always encouraged to organize various activities to promote relationship between SSI and our shareholders.

SSI’s contacts for official information and queries on SSI: • SSI's authorized person to announce

official information: Mr. Nguyen Hong Nam, Deputy CEO.

• SSI Website: www.ssi.com.vn

• Email address of the IR Department: [email protected]

• Address: 72 Nguyen Hue,District 1, Ho Chi Minh City and 1C Ngo Quyen St., Hoan Kiem District, Hanoi.

Disclosing proactive, timely and accurate information to valued shareholders The “Investor Relations” section on SSI website generates all information and data about SSI including those published information, financial data, annual reports, documents of shareholders’ meeting over the years, stock historical prices and price volatility… important documents of the company such as the company’s Charter, regulations on corporate governance and related reports… The above information is regularly updated in both Vietnamese and English to ensure interested local and foreign shareholders and investors can acquire information upon demands.

Publishing Annual Reports is mandatory for listed companies. We, SSI, have always taken the best efforts to provide our shareholders and investors with the most professional and adequate Annual Reports with the primary purpose of conveying the most accurate overview of SSI’s business operation in the past one year as well as SSI’s business direction in next year. SSI’s efforts have been proven by being honored “Best Annual Report of the year” for two consecutive years (2010 and 2011). SSI’s Annual Report is presented in two versions of English and Vietnamese, and is distributed at our Annual General Shareholders’ Meetings or sent directly to our shareholders and investors upon request. The soft copy is also available on SSI’s website.

Promoting active information exchange between SSI and shareholdersIn addition to proactively providing and disclosing information to shareholders and investors via SSI’s various publications and website, SSI strongly promotes information exchange activities between the company and our shareholders.

SSI’s General Shareholders’ Meeting organized every year is a fine opportunity for shareholders to meet and forwardly discuss with the Board of Directors about business operation of the company. Being a public company with foreign shareholders accounting for nearly 49% of chartered capital, SSI prepares documents for the Meeting in both English and Vietnamese; dual language live interpretation is also provided to facilitate our foreign shareholders throughout the Meeting. Information on SSI is also available in workshops, seminars and meetings between SSI representatives and investors which take place several times a year.

Apart from finding information on SSI via the above channels and methods, shareholders and investors are able to send questions and queries directly to SSI via email address of our Investor Relations Department or request for a face-to-face meeting with SSI’s Board of Directors, Supervisory Board and CEO. Rights of our shareholders are well recognized and details are available in SSI’s corporate governance regulations which are published on our website for shareholders and investors’ reference. In 2011, SSI addressed all queries of shareholders and investors sent via email and did not receive any inquiries to arrange face-to-face meetings with the Board of Directors, Supervisory Board and CEO or request to review or excerpt information of any documents provided by SSI.

INVESTOR RELATIONS

8382

CORPORATECULTURE

After 12 years of development, SSI has established its own corporate culture, forming the core value of human resource in SSI. These values are highly appreciated and exist in daily activities. Therefore, it is the foundation for the Company to overcome many difficulties and go towards a sustainable development in future.

Teamwork, sharing, cooperation and responsibility are the dominant culture of

the company

SSI promotes team spirit, team work to improve work efficiency. Each individual

in the group with his/her own strengths and weaknesses presents his/her idea to

have an appropriate initiative. Each staff member in SSI whom is assigned specific

task is responsible for his/her work. The company understands that a strong

group needs to be formed on the spirit of cooperation, sharing and having a same

orientation.

The two-way information sharing between the board of management and the

employees are highly encouraged via, direct mail, online voting or via intranet.

Officers and employees of all levels can express directly their opinions to their

leaders about daily activities, contribute initiatives to improve the efficiency of

the Company. Through these initiatives, the board of management will execute

appropriate action plan. The leaders themselves also frequently update business

situation, new policy to staffs via email and periodic meetings.

In 2012, SSI plans to build more internal communication channel to expand

opportunities to exchange information between all company members.

Maintaining a rich spiritual and cultural life in the company

SSI maintains the Annual meeting program to review a year of operation, to set

target for the next year, and it is also a chance for all SSI members in all over the

country to meet, to exchange ideas, to participate in collective actions, to show

artistic talent. In addition to this program, each division, each department is

encouraged to strengthen its own exchange activities to enhance the teamwork in

small groups and in the company as a whole.

Beside working hours, employees participate actively in sport activities like football

to increase exchange relation between departments in the company and in the

industry as well. In 2011, SSI participated in many football matches with other

securities firms, commercial banks and other units.

Caring and ensuring maximum interest for employees

Besides giving the competitive earning to employees, ensuring workers’ benefits

as prescribed by law, SSI strengthens health care for employees with its own

programs. Comprehensive health exam for employees is operated annually. In

addition, the company offers all employees a specific health insurance to ensure

SSI staffs can use the better and the most modern health services today.

CORPORATE CULTURE

8584

CORPORATERESPONSIBILITIES

One of the 9 core business principles of SSI is “We strive to better the communities in which we work”. Following that principle, SSI has focused on the education and physical development programs for young people, as well as actvities for the community to help build a better society.

Schools and storm shelters construction project at Ha Tinh provinceFor the year 2011, SSI’s most important project was the implementation of the idea of building schools which could also be storm shelters for people to avoid flood disaster in four districts of Huong Khe, Huong Son, Vu Quang and Duc Tho of Ha Tinh province. This project was conducted with the strictly supervision of SSI from the last month of 2010.

And with the endless effort, on August 23th 2011, the project of building 4 schools completed. At the Inauguration Ceremony, Chairman of Ha Tinh People Committee awarded merit certificates to SSI in assisting people in Ha Tinh remedial flood in 2010. With fully equipped facilities, pupils and people in that area can be assured of living in better conditions.

In addition, during this project, SSI staffs also visited the kindergardens in Hoa Hai, Huong Khe district - one of the four new schools and gave some studying stationary and toys to help children to have better condition in learning and development.

Other community projects• Continuing the donation projects for the difficult cases in Viet Duc Hospital,

National Institute of Burns, Cancer Institution, Gia Dinh Hospital,…

• Continuing to participate in charitable activities that contribute significantly for the community: educational support program for Mu Cang Chai area, Children Fund of District 1 (HCMC), programs of Vietnam Blind Association, the charity music night,...

• Continuing the traditional to give the charity gifts for the poor families at the end of the year.

• Funding the construction of community education center at Quang Han, Tra Linh district, Cao Bang province.

CORPORATE RESPONSIBILITIES

VIAUDITED

FINANCIAL REPORTS

General Information

Report of Management

Independent Auditors’ Report

Consolidated Balance Sheet

Consolidated Income Statement

Consolidated Cash Flow Statement

Consolidated Statement of Changes

in Owners’ Equity

Notes to the Consolidated Financial

Statements

88

90

91

92

96

98

100

102

8988

MANAGEMENT

Members of the Management during the year and at the date of this report are:

Name Title Election/Appointment/Dismiss date

Mr. Nguyen Duy Hung Chief Executive Officer Appointed on 05 March 2007

Mr. Nguyen Hong Nam Deputy Chief Executive Officer Re-appointed on 05 September 2003

LEGAL REPRESENTATIVEThe legal representative of the Company during the year and at the date of this report is Mr. Nguyen Duy Hung, who is concurrently Chairman of Board of Directors and Chief Executive Officer.

AUDITORSThe auditor of the Company is Ernst and Young Vietnam Limited.

GENERALINFORMATION

THE COMPANYThe Company is a joint stock company established in Vietnam under the Incorporation License No. 3041/GP-UB dated 27 December 1999 issued by the Hochiminh City People’s Committee and the first Operating Licence No. 056679 dated 30 December 1999 issued by Hochiminh City Department of Planning and Investment. The Company then received the Operating License No. 03/GPHDKD issued by the State Securities Commission on 05 April 2000 and subsequently amended licenses.

The principal activities of the Company are brokerage service, securities trading, finance and investment advisory service, custodian service, and underwriting for share issues.

The Company’s shares were officially listed on Hanoi Securities Trading Center (now Hanoi Stock Exchange) from 15 December 2006. On 29 October 2007 the listing was switched to the Hochiminh Stock Exchange.

The Company’s Head Office is located at 72 Nguyen Hue, District 1, Hochiminh City. The Company also has branches based in Hochiminh City, Hanoi, Hai Phong, Vung Tau, Nha Trang and Quang Ninh.

BOARD OF DIRECTORSMembers of Board of Directors during the year and at the date of this report are:


Mr. Nguyen Duy Hung Chairman Re-elected on 28 April 2010

Mr. Nguyen Hong Nam Member Re-elected on 24 April 2009

Mr. Ngo Van Diem Member Elected on 21 April 2007

Mr. Alistar Marshall Bulloch MemberAppointed on 19 October 2010Approved by Shareholders’ Meeting on 28 April 2011

Ms. Dam Bich Thuy Member Elected on 24 April 2009

Mr. Bui Quang Nghiem Member Elected on 24 April 2009

Mr. Yuichi Akai Member Elected on 28 April 2010Dismissed on 28 April 2011

Mr. Yoshio Urata Member Appointed on 28 Nov 2011

BOARD OF SUPERVISIONMembers of Board of Supervision during the year and at the date of this report are:


Mr. Nguyen Van Khai Head of the Board of Supervision Re-elected on 28 April 2011

Mr. Dang Phong Luu Member Re-elected on 28 April 2010

Ms. Ho Thi Huong Tra Member Elected on 21 April 2007

GENERAL INFORMATION

9190

INDEPENDENTAUDITORS’ REPORTTo: The Shareholders Saigon Securities Incorporation

We have audited the consolidated financial statements of Saigon Securities Incorporation (“the Company”) and its subsidiaries as set out on page 92 to 144 which comprise the consolidated balance sheet as at 31 December 2011, the consolidated income statement, the consolidated cash flow statement and the consolidated statement of changes in owners' equity for the year then ended and the notes thereto.

The preparation and presentation of these consolidated financial statements are the responsibility of the Company’s Management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

Basis of OpinionWe conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

OpinionIn our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Company and its subsidiaries as at 31 December 2011, of the consolidated results of their operations and their consolidated cash flows for the year then ended in accordance with the Vietnamese Accounting Standards and System, the accounting policies applicable to the securities company as prescribed in Circular No. 95/2008/TT-BTC dated 24 October, 2008 and Circular No. 162/2010/TT-BTC dated 20 October, 2010 issued by Ministry of Finance and comply with relevant statutory requirements.

Ernst & Young Vietnam Limited

Vo Tan Hoang Van Nguyen Phuong Nga Deputy General Director Auditor in chargeAuditor Certificate No: 0264/KTV Auditor Certificate No: 0763/KTV

Hanoi, Vietnam19 March 2012

REPORT OFMANAGEMENTManagement of Saigon Securities Incorporation (“the Company”) is pleased to present its report and the consolidated financial statements of the Company and its subsidiaries for the year ended 31 December 2011.

MANAGEMENT’S RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS The Management is responsible for the consolidated financial statements of each financial year which give a true and fair view of the consolidated state of affairs of the Company and its subsidiaries, of the consolidated results of their operations, the consolidated cash flows and the consolidated movement of their owner’s equity for the year. In preparing those consolidated financial statements, the Management is required to:

► Select suitable accounting policies and apply them consistently; ► Make judgements and estimates that are reasonable and prudent; ► State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained

in the consolidated financial statements; and ► Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the

Company will continue its business.

The Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the consolidated financial position of the Company and its subsidiaries and to ensure that the accounting records comply with the applied accounting system. It is also responsible for safeguarding the assets of the Company and its subsidiaries and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Management confirmed that it has complied with the above requirements in preparing the consolidated financial statements for the fiscal year ended 31 December 2011.

STATEMENT BY MANAGEMENTThe Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Company and its subsidiaries as at 31 December 2011, of the consolidated results of their operations, the consolidated cash flows and the consolidated movement of their owner’s equity for the year then ended in accordance with the Vietnamese Accounting Standards and System, the accounting policies applicable to the securities company as prescribed in Circular No. 95/2008/TT-BTC dated October 24, 2008 issued by Ministry of Finance and its supplements and amendment and comply with relevant statutory requirements.

For and on behalf of the Management:

Mr. Nguyen Duy Hung Chief Executive Officer

Hochiminh City, Vietnam19 March 2012

Reference: 60755007/15374503

9392

CONSOLIDATEDBALANCE SHEETAS AT 31 DECEMBER 2011

Currency: VND

Code Assets Notes 31 December 2011 31 December 2010 Restated

100 A. CURRENT ASSETS 3,223,900,965,471 6,366,260,016,716 110 I. CASH AND CASH EQUIVALENTS 4 1,945,764,811,547 2,969,211,607,544 111 1. Cash in hand 730,095,592,831 1,242,775,103,795 112 2. Cash equivalents 1,215,669,218,716 1,726,436,503,749 120 II. SHORT-TERM FINANCIAL INVESTMENTS 869,367,192,516 2,547,214,987,361 121 1. Short-term investments 6.1 1,053,037,748,335 2,663,571,961,736 122 2. Short-term investments of trustees 7 119,452,989,696 111,601,461,516 129 3. Provision for short-term investments 6.2 (303,123,545,515) (227,958,435,891)130 III. SHORT-TERM RECEIVABLES 397,623,486,933 833,140,464,747 131 1. Receivables from customers 8 291,054,053,897 701,200,855,316 132 2. Advances to suppliers 8 2,223,755,828 5,381,629,435 135 3. Receivables from securities trading activities 8 677,728 12,115,851 138 4. Other receivables 8 122,281,746,055 126,545,864,145 139 5. Provision for doubtful receivables 9 (17,936,746,575) -150 IV. OTHER CURRENT ASSETS 10 11,145,474,475 16,692,957,064 151 1. Prepaid expenses 5,334,439,840 14,234,333,847 152 2. Value-added tax deductible 85,921,890 -154 3. Tax and statutory obligations 32 3,347,725,304 -158 4. Other current assets 2,377,387,441 2,458,623,217 200 B. NON-CURRENT ASSETS 3,283,612,233,383 2,426,634,549,267220 I. FIXED ASSETS 165,128,640,442 179,887,068,428 221 1. Tangible fixed assets 11 35,668,894,339 40,419,238,801 222 Cost 97,855,281,879 89,554,391,895 223 Accumulated depreciation (62,186,387,540) (49,135,153,094)227 2. Intangible fixed assets 12 128,541,196,863 128,833,600,459 228 Cost 154,196,831,839 145,785,353,179 229 Accumulated amortization (25,655,634,976) (16,951,752,720)230 3. Construction in progress 918,549,240 10,634,229,168 240 II. INVESTMENT PROPERTIES 13 275,387,155,603 33,671,559,285 241 1. Cost 282,497,013,600 33,671,559,285 242 2. Accumulated depreciation (7,109,857,997) -250 III. LONG-TERM FINANCIAL INVESTMENTS 2,772,963,610,114 2,159,596,487,905251 1. Investments in subsidiaries - -252 2. Investments in associates and joint-ventures 14 1,062,004,865,058 567,438,087,550253 3. Long-term securities investments 6.1 1,128,856,979,464 1,439,817,191,957 254 Available-for-sale securities 1,128,856,979,464 1,439,817,191,957 255 Held-to-maturity securities - - 258 4. Other long-term investments 6.1 749,788,390,000 226,171,390,000 259 5. Provision for long-term investments 6.2 (167,686,624,408) (73,830,181,602)260 IV. OTHER LONG-TERM FIXED ASSETS 47,687,800,202 53,479,433,649261 1. Long-term prepaid expenses 15 20,282,431,210 30,696,711,905 262 2. Deferred tax asset 31 8,330,545,610 5,532,841,362263 3. Payment for Settlement Assistance Fund 16 12,889,932,650 10,389,932,650 268 4. Other long-term assets 6,184,890,732 6,859,947,732 269 V. GOODWILL 22,445,027,022 -

270 TOTAL ASSETS 6,507,513,198,854 8,792,894,565,983

Currency: VND

Code Resources Notes 31 December 2011 31 December 2010 Restated

300 A. LIABILITIES 1,350,341,790,438 3,260,700,650,860

310 I. CURRENT LIABILITIES 1,180,434,253,286 3,118,393,046,643

311 1. Short-term loans 17 - 2,000,000,000,000

312 2. Payables to suppliers 2,844,837,415 6,371,739,825

313 3. Advances from customers 18 73,489,828,832 56,382,853,469

314 4. Statutory obligations 19 5,642,394,016 26,349,567,740

315 5. Payables to employees 19,057,374 24,348,181

316 6. Accrued expenses 20 6,182,323,553 69,046,222,196

319 7. Other short-term payables 21 416,679,318,364 46,261,088,245

320 8. Payables to securities trading activities 22 577,727,624,842 835,511,208,250

321 9. Dividend and interest payables 23 6,476,918,423 4,261,464,657

322 10. Payables to securities issuers 605,427,160 2,398,853,100

323 11. Bonus and welfare fund 24 90,064,800,637 69,431,253,766

328 12. Short-term unearned revenue 701,722,670 2,354,447,214

330 II. NON-CURRENT LIABILITIES 169,907,537,152 142,307,604,217

333 1. Other long-term payables 25 577,091,185 13,068,415,136

334 2. Long-term loans and debts - -

335 3. Deferred income tax payables 31 43,592,871,995 881,886,941

336 4. Provisions for termination allowance 3,233,478,696 3,759,653,696

341 5. Funds received from trust investors 26 122,504,095,276 124,597,648,444

400 B. OWNERS’ EQUITY 27 5,080,665,298,616 5,459,312,028,182

410 I. OWNERS’ EQUITY 5,080,665,298,616 5,459,312,028,182

411 1. Chartered capital 3,526,117,420,000 3,511,117,420,000

412 2. Share premium 340,921,476,378 340,921,476,378

413 3. Other owners’ capital 383,614,879 -

414 4. Treasury shares (88,591,286,000) (12,365,677,000)

416 5. Foreign exchange differences reserve - -

418 6. Financial and statutory reserves 289,383,181,436 220,524,469,842

419 7. Other funds belonging to owners’ equity - -

420 8. Undistributed earnings 1,012,450,891,924 1,399,114,338,962

500 C. NON-CONTROLLING INTERESTS 32 76,506,109,799 72,881,886,941

440 TOTAL LIABILITIES AND OWNERS’ EQUITY 6,507,513,198,854 8,792,894,565,983

(*) The restatement in the opening balances represents the presentation of unearned revenue as a separate line on the balance sheet in accordance with the Circular 162/2010/TT-BTC dated on the 20 October 2010 of the Ministry of Finance, which has been effective from the 1 January 2011 (See the Note 2.6 and 21).

The accompanying notes from 1 to 40 form part of the consolidated financial statements. The accompanying notes from 1 to 40 form part of the consolidated financial statements.

CONSOLIDATED BALANCE SHEETAS AT 31 DECEMBER 2011

B01-CTCK B01-CTCK

9594

Currency: VND

Code Items 31 December 2011 31 December 2010

050 7. Custody securities of unlisted public company 303,065,520,000 191,936,160,000

In which:

051 7.1 Tradable securities 302,130,730,000 190,637,660,000

052 7.1.1 Tradable securities of custody members 31,250,000 11,347,210,000

053 7.1.2 Tradable securities of local investors 291,003,630,000 173,917,160,000

054 7.1.3 Tradable securities of foreign investors 11,095,850,000 5,373,290,000

055 7.1.4 Tradable securities of other entities - -

056 7.2 Temporarily untradeable securities 405,190,000 522,900,000

057 7.2.1 Temporarily untradeable securities of custody members - -

058 7.2.2 Temporarily untradeable securities of local investors 405,190,000 522,900,000

059 7.2.3 Temporarily untradeable securities of foreign investors - -

060 7.2.4 Temporarily untradeable securities of other entities - -

061 7.3 Collateral securities 309,600,000 309,600,000

066 7.4 Temporarily held securities - -

071 7.5 Securities awaiting for settlement 220,000,000 466,000,000

072 7.5.1 Securities awaiting for settlement of custody members - -

073 7.5.2 Securities awaiting for settlement of local investors 220,000,000 466,000,000

074 7.5.3 Securities awaiting for settlement of foreign investors - -

075 7.5.4 Securities awaiting for settlement of other entities - -

076 7.6 Isolated securities awaiting for withdrawal - -

081 7.7 Securities used to adjust trading errors - -

082 8. Securities not in custody of investors - -

083 9. Securities not in custody of securities corporations - -

084 10. Trusted securities used for auction - -

TOTAL OFF-BALANCE SHEET ITEMS 12,323,564,970,000 12,012,252,470,000

Preparer Approver Approver



Ms. Nguyen Thi Thanh HaChief Financial Officer

Mr. Nguyen Duy HungChief Executive Officer

OFF BALANCE SHEET ITEMSCurrency: VND

Code Items 31 December 2011 31 December 2010

001 1. Leased fixed assets - -

002 2. Pledged materials and valuable papers - -

003 3. Security assets - -

004 4. Bad debts written off - -

005 5. Foreign currencies - -

006 6. Custody securities 12,020,499,450,000 11,820,316,310,000

In which

007 6.1 Tradable securities 10,468,549,880,000 9,076,671,230,000

008 6.1.1 Tradable securities of custody members 442,902,530,000 765,510,730,000

009 6.1.2 Tradable securities of local investors 8,440,746,120,000 6,943,224,410,000

010 6.1.3 Tradable securities of foreign investors 1,584,901,230,000 1,367,936,090,000

011 6.1.4 Tradable securities of other entities - -

012 6.2 Temporarily untradeable securities 427,008,780,000 2,100,775,920,000

013 6.2.1 Temporarily untradeable securities of custody members 1,000,000,000 5,000,000,000

014 6.2.2 Temporarily untradeable securities of local investors 420,463,780,000 2,074,807,380,000

015 6.2.3 Temporarily untradeable securities of foreign investors 5,545,000,000 20,968,540,000

016 6.2.4 Temporarily untradeable securities of other entities - -

017 6.3 Mortgaged securities 947,988,450,000 378,700,390,000

018 6.3.1 Mortgaged securities of custody members - -

019 6.3.2 Mortgaged securities of local investors 947,988,450,000 378,700,390,000

020 6.3.3 Mortgaged securities of foreign investors - -

021 6.3.4 Mortgaged securities of other entities - -

022 6.4 Suspended securities - -

027 6.5 Securities awaiting for settlement 168,833,120,000 246,968,100,000

028 6.5.1 Securities awaiting for settlement of custody members 401,000,000 91,296,100,000

029 6.5.2 Securities awaiting for settlement of local investors 167,869,720,000 150,535,200,000

030 6.5.3 Securities awaiting for settlement of foreign investors 562,400,000 5,136,800,000

031 6.5.4 Securities awaiting for settlement of other entities - -

032 6.6 Isolated securities awaiting for withdrawal - -

037 6.7 Securities awaiting for trading 8,119,220,000 17,200,670,000

038 6.7.1 Securities awaiting for trading of custody members - -

039 6.7.2 Securities awaiting for trading of local investors 3,962,860,000 16,716,960,000

040 6.7.3 Securities awaiting for trading of foreign investors 4,156,360,000 483,710,000

041 6.7.4 Securities awaiting for trading of other entities - -

042 6.8 Securities collateralized for borrowings - -

047 6.9 Securities used to correct trading errors - -



B01-CTCK B01-CTCK


9796

CONSOLIDATEDINCOME STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2011

Currency: VND

Code Items Notes Current year Prior year

01 1. Revenue 28 848,048,772,890 1,503,616,689,880

In which:

01.1 - Revenue from brokerage services 96,005,005,216 176,043,714,129

01.2 - Revenue from securities investments and capital contribution 227,702,451,908 710,010,595,072

01.3 - Revenue from securities underwriting services 6,420,000,000 13,140,023,320

01.4 - Revenue from investment portfolio management services for entrust investors 18,328,050,969 19,811,488,075

01.5 - Revenue from advisory services 38,076,296,310 108,242,078,334

01.6 - Revenue from securities custody services 2,487,230,802 2,421,084,957

01.7 - Revenue from entrusted auction services - -

01.8 - Revenue from property lease 4,478,427,405 930,873,701

01.9 - Other revenue 454,551,310,280 473,016,832,292

02 2. Deductions 28 5,850,000 250,000,000

10 3. Net revenue 28 848,042,922,890 1,503,366,689,880

11 4. Operating expenses 29 656,773,739,348 592,325,572,635

In which:

- Direct operating expenses 487,752,186,918 406,339,977,085

- Securities provision expenses 169,021,552,430 185,985,595,550

20 5. Gross profit from operating activities 191,269,183,542 911,041,117,245

25 6. General and administrative expenses 30 27,938,858,746 11,145,589,606

30 7. Net profit from operating activities 163,330,324,796 899,895,527,639

31 8. Other income 553,902,871 5,826,330,656

32 9. Other expenses 680,706,469 5,638,799,981

40 10. Other profit/(loss) (126,803,598) 187,530,675

41 11. Share of profit/(loss) in associates 14 (36,599,141,321) 2,736,427,943

50 12. Profit before tax 126,604,379,877 902,819,486,257

51 13. Current corporate income tax 31 3,937,863,518 195,700,683,962

52 14. Deferred corporate income tax 31 39,913,280,804 17,649,799,417

Currency: VND


60 15. Profit after tax 82,753,235,555 689,469,002,878

61 16. Non-controlling interests 32 3,624,222,810 881,886,941

62 17. Profit after tax attributable to equity holders of the parent 79,129,012,745 688,587,115,937

70 18. Basic earnings per share 36 227 1,982

Preparer



Approver


Approver


CONSOLIDATEDINCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2011

B02-CTCK B02-CTCK


9998

Currency: VND


26 Collections from investments in other entities 387,760,777,945 1,164,542,233,334

27 Interests, dividends and distributed profit 130,279,911,870 151,333,746,803

30 Net cash flows used in investing activities (185,160,283,739) 570,398,534,024

III. CASH FLOW FROM FINANCING ACTIVITIES

31 Proceeds from share issuance, capital contribution 15,000,000,000 963,585,000

Capital contribution of minority shareholders - 72,000,000,000

32 Capital repayments to shareholders, payments for treasury shares (85,816,286,000) (2,775,000,000)

33 Proceeds from loans 60,000,000,000 2,000,000,000,000

34 Loan repayments (2,060,000,000,000) -

36 Dividends paid to shareholders (347,461,697,000) (328,127,562,750)

40 Net cash flows from/ (used in) financial activities (2,418,277,983,000) 1,742,061,022,250

50 Net increase/(decrease) in cash and cash equivalents during the period (1,023,541,733,596) 323,902,618,376

60 Cash and cash equivalents at the beginning of the period 4 2,969,211,607,544 2,650,001,084,717

61 Effects of foreign exchange 94,937,598 (4,692,095,549)

70 Cash and cash equivalents at the end of the period 4 1,945,764,811,547 2,969,211,607,544

Preparer



Approver


Approver


CONSOLIDATEDCASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2011

Currency: VND


I. CASH FLOW FROM OPERATING ACTIVITIES

01 1. Total accounting profit before tax 126,604,379,877 902,819,486,257

2. Adjustments for 177,342,019,957 (264,214,675,780)

02 Depreciation of fixed assets 31,684,925,138 22,079,250,762

03 Provisions 186,958,299,005 185,985,595,550

04 Unrealized foreign exchange gain/(loss) (94,937,598) 4,692,095,549

05 Gain/(loss) from investing activities (59,784,044,364) (541,749,415,450)

06 Interest expenses 18,577,777,776 64,777,797,809

08 3. Operating income before changes in working capital 303,946,399,834 638,604,810,477

09 (Increase)/decrease in receivables 390,332,648,163 (520,433,692,386)

10 (Increase)/decrease in trading securities 1,036,658,022,705 (1,207,906,296,852)

11 Increase/(decrease) in payables (exclusive of interest payables, Corporate income tax payable) (36,359,436,956) (562,771,659,083)

12 (Increase)/decrease in prepaid expenses 19,258,359,982 (33,486,758,656)

13 Interest paid (80,975,944,421) (30,372,378,398)

14 Corporate income tax paid (22,900,576,918) (230,330,622,825)

15 Other gains from operating activities 7,500,000 20,900,000

16 Other payments for operating activities (30,070,439,246) (41,881,240,175)

20 Cash flow from/(used in) operating activities 1,579,896,533,143 (1,988,556,937,898)

II. CASH FLOWS FROM INVESTING ACTIVITIES

21 Purchases of fixed assets (263,542,218,009) (69,145,751,017)

22 Gains from fix assets disposal 901,636,358 4,953,545,455

23 Loan note issue, debt instrument purchase of other entities (12,500,000,000) (49,273,190,684)

24 Loan collections, debt instrument sales of other entities 38,610,684,983 20,808,931,503

25 Payments for investments in associates (466,671,076,887) (652,820,981,370)

CONSOLIDATEDCASH FLOW STATEMENT


B03-CTCK B03-CTCK


101100

CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITYFOR THE YEAR ENDED 31 DECEMBER 2011

Items Note

Opening balance Increase/Decrease Increase/Decrease Ending balance

1 January 2010 1 January 2011Year 2010 Year 2010 Year 2011

31 December 2010 31 December 2011Increase Decrease Increase Decrease

A B 1 2 3 4 5 6 7 8

1. Chartered capital 27 1,533,334,710,000 3,511,117,420,000 1,977,782,710,000 - 15,000,000,000 - 3,511,117,420,000 3,526,117,420,000

2. Share premium 27 2,095,966,265,902 340,921,476,378 513,920,476 (1,755,558,710,000) - - 340,921,476,378 340,921,476,378

3. Other owners’ capital - - - - 383,614,879 - - 383,614,879

4. Treasury shares 27 (449,664,524) (12,365,677,000) (12,365,677,000) 449,664,524 (76,225,609,000) - (12,365,677,000) (88,591,286,000)

5. Asset revaluation reserve - - - - - - - -

6. Foreign exchange differences reserve - - - - - - - -

7. Development fund - - - - - - - -

8. Financial and statutory reserve 27 140,116,480,248 220,524,469,842 80,407,989,594 - 68,858,711,594 - 220,524,469,842 289,383,181,436

9. Other funds belonging to owners’ equity - - - - - - - -

10. Undistributed earnings 27 1,049,533,539,162 1,399,114,338,962 688,728,798,534 (339,147,998,730) 81,058,284,480 (467,721,731,467) 1,399,114,338,962 1,012,450,891,9244,818,501,330,788 5,459,312,028,182 2,735,067,741,604 (2,094,257,044,206) 89,075,001,952 (467,721,731,467) 5,459,312,028,182 5,080,665,298,616

TOTAL 27 4,818,501,330,788 5,459,312,028,182 2,735,067,741,604 (2,094,257,044,206) 89,075,001,952 (467,721,731,467) 5,459,312,028,182 5,080,665,298,616

Preparer



Approver


Approver



CONSOLIDATED REPORT ON MOVEMENT OF OWNER’S EQUITY


B05-CTCK B05-CTCK

103

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

AS AT 31 DECEMBER 2011 AND FOR THE YEAR THEN ENDED

B09-CTCK

SubsidiariesAs at 31 December 2011, the Company has two (02) directly owned subsidiaries as follows:

Company name Established under Business sector Chartered capi-tal

% holding

SSI Asset Management Com-pany Ltd. (SSIAM).

Operating License No.19/UBCK- GP dated 3 August 2007.

Investment fund management and investment portfolio management.

VND 30 billion. 100%

SSI Investment Member Fund (SSI IMF).

Approval Letter of Member Fund Foundation No.130/TB-UBCK dated 27 July 2010.

Investments in securities and other assets, including real estates.

VND 360 billion. 80%

As at 31 December 2011, the Company has one (01) indirectly owned subsidiary as follows:

Company name Established under Business sector Maximum in-vestment capital

% holding

SSI International Corporation (SSI IC).

Register No. SRV 090813396-4724807 dated 27 August 2009 in Delaware, USA.

Foreign Investment License No. 249/BKH-DTRNN issued by Ministry of Planning and Investment dated 03 July 2009, and:

Amendment Certificate No. 249/BKH-ĐTRNN-ĐC1 issued by Ministry of Planning and Investment dated 31 August 2010.

Investments in real estates and of-fice buildings in the United States.

USD 18.5 million. 80%, indirectly owned through SSI IMF.

Associates and Joint Ventures

SSI Vision Fund

In 2007, the Company committed to investment in SSI Vision Fund with a total capital contribution of VND 485 billion, accounting for 28.53% of the Fund’s charter capital. SSI Vision Fund is a closed – end member fund with a total initial investment capital of VND 1,700,000,000,000. The operating life of the Fund is 5 years with a possible extension of 2 years. The Fund was established under the Incorporation and Operating Licence No.126/TB-UBCK issued by the State Securities Commission on 14 November 2007. In 2010, the Company acquired 16 million Fund certificates from Credit Suisse AG – Singapore branch. Accordingly, as at 31 December 2011, the Fund is 37.94% owned by the Company.

Bentre Aquaproduct Import and Export Joint Stock Company

As at 30 September 2011, total investment of the Company and its subsidiaries in Bentre Aquaproduct Import and Export JSC (stock code ABT) is VND 139,825,864,611, accounting for 26.73% of total number of ABT shares in circulation. The Company intends to hold the investment for the long-term. Hence, this investment has become an associate of the Company since 30 September 2011.

In the 4th quarter of 2011, Bentre Aquaproduct Import and Export JSC bought treasury shares. Accordingly, as at 31 December 2011, the holding percentage of the Company and its subsidiaries in Bentre Aquaproduct Import and Export JSC is 28.45%. Bentre Aquaproduct Import and Export JSC is a listed company in Hochiminh Stock Exchange. Its chartered capital as of 31 December

NOTES TO THECONSOLIDATED FINANCIAL STATEMENTSAS AT 31 DECEMBER 2011 AND FOR THE YEAR THEN ENDED

1. THE COMPANY

The Company is a joint stock company established in Vietnam under the Corporate Law of Vietnam and the Operation License

No. 3041/GP-UB dated 27 December 1999 issued by the Hochiminh City People’s Committee and the first Business Registration

No. 056679 dated 30 December 1999 issued by Hochiminh City Department of Planning and Investment. The Company then

received the Securities Trading License No. 03/GPHDKD issued by the State Securities Commission on 05 April 2000 and

subsequently amended licenses.

The primary businesses of the Company are brokerage service, securities trading, finance and investment advisory service,

custodian service, and underwriting for securities issues.

The Company’s shares were officially listed on Hanoi Securities Trading Center (now Hanoi Stock Exchange) from 15 December

2006. On 29 October 2007 the listing was switched to the Hochiminh Stock Exchange.

The Company’s Head Office is located at 72 Nguyen Hue, District 1, Hochiminh City. The Company also has branches based in

Hochiminh City, Hanoi, Hai Phong, Vung Tau, Nha Trang and Quang Ninh.

Chartered Capital

According to the Business Registration No. 056679 dated 30 December 1999 issued by Hochiminh City Department of Planning

and Investment, the Company’s chartered capital was initially VND 6,000,000,000. The chartered capital has been supplemented

over time in accordance with the amended licenses. As at 31 December 2011, the Company’s total chartered capital as stated

in its latest Amended license No. 322/UBCK-GP by the Chairman of State Securities Commission dated 18 May 2010 was VND

3,511,117,420,000.

In December 2011, the Company offered 1,500,000 shares to the Company’s key personnel in accordance with the Shareholders

Meeting Resolution No. 01/2011/NQ-DHDCD dated 28 April 2011 and relevant decisions made by the Chairman of Board of

Directors. After the offering, the Company’s capital increased by VND 15,000,000,000. However, by 31 December 2011, the

Company has not been granted new amended license for the issuance of additional shares, hence the Company’s total chartered

capital remains the same as the pre-offering’s balance.

Location and network

The Company’s Head Office is located in 72 Nguyen Hue, District 1, Hochiminh City, Vietnam. As at 31 December 2011, the

Company has one (01) Head Office, one (01) branch and two (02) transaction offices in Hochiminh City, two (02) branches and one

(01) transaction office in Hanoi, one (01) branch in Hai Phong, one (01) branch in Vung Tau, one (01) branch in Nha Trang and one

(01) branch in Quang Ninh.

B09-CTCK

102

105104



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT 31 DECEMBER 2011 AND FOR THE YEAR THEN ENDED

B09-CTCK B09-CTCK

At the reporting date, the investor’s deposits for securities trading were presented on the consolidated balance sheet of the Company under the item “Cash at bank” since these bank accounts are still maintained under the Company’s name.

Accordingly, the accompanying consolidated balance sheet, consolidated income statement, consolidated cash flow statement, consolidated report on movement of owner’s equity and related notes, including their utilisation are not designed for those who are not informed of Vietnam’s accounting principles, procedures and practices and furthermore are not intended to present the financial position, results of operations, cash flows and movement of owner’s equity in accordance with accounting principles and practices generally accepted in countries and territories other than Vietnam.

2.2 Applied accounting documentation system

The applied accounting documentation system is the General Journal system.

2.3 Fiscal year

The Company’s fiscal year starts on 1 January and ends on 31 December. The Company also prepares interim financial statements for the six-month period ended 30 June annually.

2.4 Accounting currency

The Company maintains its accounting records in VND.

2.5 Basis of consolidation

The consolidated financial statements comprise the financial statements of Saigon Securities Incorporation (the Parent Company) and its subsidiaries for the year ended 31 December 2011.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Company obtains control, and continued to be consolidated until the date that such control ceases.

The financial statements of the parent company and subsidiaries are prepared for the same reporting period and using the consistent accounting policies.

All intra-company balances, incomes and expenses, and unrealised gains or losses ensuing from intra-company transactions are eliminated in full.

Non-controlling interests represent the portion of profit or loss and net assets of the subsidiaries which are not held by the Company, and are presented separately in the consolidated income statement and within equity in the consolidated balance sheet, separately from parent shareholders’ equity.

2.6 Restatement of opening balance

The Company has added Short-term unearned revenue line on the balance sheet in accordance with the guidance of Circular 162/2010/TT-BTC issued by the Ministry of Finance on 20 October 2010. As the result, this item has been separately presented from Other short-term payables on the consolidated balance sheet of the Company.

2011 is VND 136,072,070,000. Its major operations comprise of processing and exporting seafood, importing materials and commodities; aquaculture; foods and drinks, and other services.

Hung Vuong Corporation

As at 31 December 2011, total investment of the Company and its subsidiaries to Hung Vuong Corporation (stock code HVG) is VND 381,165,255,115, which accounts for 20.01% of total number of HVG shares in circulation. The Company intends to hold the investment for the long-term. And therefore, this investment has become an associate since 31 December 2011. Hung Vuong Corporation is a listed company in Hochiminh Stock Exchange. Its chartered capital as of 31 December 2011 is VND 659,980,730,000. Its main businesses are raising and processing seafood for export; producing foods for aquaculture, livestock and poultry; providing cold storage services and real estates.

Pan-Pacific Corporation

As at 31 December 2011, total investment of the Company and its subsidiaries in Pan-Pacific Corporation (stock code PAN) is VND 36,954,806,246, which accounts for 21.90% of total number of PAN shares in circulation. The Company intends to hold the investment for the long-term. Accordingly, this investment has become an associate since 31 December 2011. Pan-Pacific Corporation is a listed company in Hochiminh Stock Exchange. Its chartered capital as of 31 December 2011 is VND 115,500,000,000. Its major operations are purchasing chemicals (except severely toxic chemicals), consignment; house cleaning services, trading industrial cleaning equipment; trading industrial - forestry - construction equipment; commercial services; installing, repairing and maintaining machinery, industrial equipment, electronics (excluding casting, metal rolling, stamping, mounding, welding, painting; electroplating; waste recycling at the office); home maintenance services; insecticide service; housing decoration, landscape, garden, rockery, parks, zoos; real estate investment; buildings, apartments management; car leasing.

Employees

Total number of employees of the Company and its subsidiaries as at 31 December 2011 was 400 (as at 31 December 2010, total number of employees is 520).

2. BASIS OF PREPARATION

2.1 Accounting standards and system

The consolidated financial statements of the Company and its subsidiaries expressed in Vietnam dong (“VND”) are prepared in accordance with the accounting policies for securities companies as set out in the Circular No. 95/2008/TT-BTC dated 24 October 2008 by the Ministry of Finance (in replacement of Decision No. 99/2000/QD-BTC dated 13 June 2000 by the Ministry of Finance), Circular No. 162/2010/TT-BTC dated 20 October 2010 by the Ministry of Finance and Vietnamese Accounting Standards issued by the Ministry of Finance as per:

► Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Standards on Accounting (Series 1);

► Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 2);

► Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 3);

► Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 4); and

► Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Standards on Accounting (Series 5).

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B09-CTCK B09-CTCK

As for overdue receivables, provision level is prescribed in Circular 228/2009/TT-BTC issued by Ministry of Finance on 7 December 2009 as follows:

Age of the overdue receivable Provision level

From six (06) months to less than one (01) year 30%

From one (01) year to less than two (02) years 50%

From two (02) years to less than three (03) years 70%

More than three (03) years 100%

3.4 Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation.

Cost of a tangible fixed asset comprises of its purchase price and any directly attributable costs to bring the asset into working condition as its intended use.

Expenditures for additions, improvements and renewals are added to the carrying amount of the assets. Expenditures for maintenance and repairs are charged to the consolidated income statement as incurred.

When tangible fixed assets are sold or disposed, their costs and accumulated depreciation are written off and any gain or loss resulting from their disposal is included in the consolidated income statement.

3.5 Intangible fixed assets

Intangible fixed assets are stated at cost less accumulated amortisation.

The cost of an intangible fixed asset comprises of its purchase price and any directly attributable costs to bring the asset into working condition as its intended use.

Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and other expenditures are charged to the consolidated income statement as incurred.

When the intangible fixed assets are sold or disposed, their costs and accumulated amortisation are written off and any gain or loss resulting from their disposal is included in the consolidated income statement.

3.6 Depreciation and amortisation

Depreciation and amortisation of tangible fixed assets and intangible assets are calculated on a straight-line basis over the estimated useful life of each asset as follows:

Buildings and architectures 6 years

Office machineries 3 years

Means of transportation 6 years

Office equipments 3 - 5 years

Software 3 - 5 years

Land use rights with indefinite life not amortised

Other intangible fixed assets 5 - 7 years

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3.1 Changes in accounting policies and disclosures

The accounting policies adopted by the Company and its subsidiaries in preparation of the consolidated financial statements are consistent with those followed in the preparation of the consolidated financial statements for the year ended 31 December 2010 except for the changes in the accounting policies in relation to the following.

3.1.1. Circular No. 210/2009/TT-BTC providing guidance for the adoption in Vietnam of the International Financial Reporting Standards on presentation and disclosures of financial instruments

On 6 November 2009, the Ministry of Finance issued Circular No. 210/2009/TT-BTC providing guidance for the adoption in Vietnam of the International Financial Reporting Standards on presentation and disclosures of financial instruments (“Circular 210”) with effectiveness from financial years beginning on or after 1 January 2011.

The adoption of Circular 210 results in new disclosures being added to the consolidated financial statements as shown in Note 34.

Circular 210 only regulates the presentation of financial statements and disclosures financial instruments, therefore, the definitions of financial assets, financial liabilities and other relating definitions presented in Note 34 to the consolidated financial statements are applied solely for the preparation of such note. The Company’s assets and liabilities are still recognized and recorded in accordance with Vietnamese Accounting Standards and System applicable for securities companies.

3.1.2. Circular 162/2010/TT-BTC dated 20 October 2010 by Ministry of Finance regarding amendments and supplements to Circular 95/2008/TT-BTC dated 24 October 2008 providing accounting guidance applicable for securities companies

On 20 October 2010, the Ministry of Finance issued Circular No. 162/2010/TT-BTC providing amendments and supplements to Circular No. 95/2008/TT-BTC dated 24 October 2008 on the accounting guidance applicable to the securities company and effective from 1 January 2011. Circular 162/2010/TT-BTC requires to present additional statetment of changes in owners’ equity as well as some additional explanations.

The Company has applied Circular 162 and presented additional notes in this consolidated financial statements.

3.2 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, cash at banks, investors’ deposits for securities trading, highly liquid short-term investments with an original maturity of less than three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.

3.3 Receivables

Receivables are presented in the consolidated financial statements at the carrying amounts at any time.

Provision for doubtful debts is made based on either aging method as for overdue receivables or potential loss estimate as per performing receivables whose borrowing institutions are under bankruptcy or dissolution, whose borrowers either disappear, or decamp, or involve in prosecution, trial or execution, or die. Provision expense is recognized into “General and administrative expense” of the period.

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B09-CTCK B09-CTCK

Company’s share of net assets of the associates. Goodwill arising on acquisition of the associate is amortized over 3-year period. The consolidated income statement reflects the share of the post-acquisition results of operation of the associate. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from associates reduce the carrying amount of the investment.

The financial statements of the associates are prepared for the same reporting year as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company’s associates are listed in Note 14.

3.11 Repurchase and reverse repurchase agreements

Securities sold under agreements to repurchase at a specified future date (“repos”) are not recognized on the consolidated balance sheet. The corresponding cash receipt is recognized as a liability in the consolidated balance sheet, the difference between the selling price and repurchasing price is recognized as an asset/ an expense pending for allocation and is allocated to the consolidated income statement over the life of the agreement. Securities purchased under agreements to resell at a specified future date (“reverse repos”) (if any) are not recognized in the consolidated balance sheet. The corresponding cash payment is recognized as an asset in the consolidated balance sheet, the difference between the purchasing price and reselling price is recognized as an income/ a liability pending for allocation and is allocated to the consolidated income statement over the life of the agreement.

3.12 Payables and accrued expenses

Payables and accrued expenses are recognized for amounts to be paid in the future for interest of convertible bonds, goods and services received, whether or not billed to the Company.

3.13 Accruals for severance pay

The severance payment to employee is accrued at the end of each reporting period for all employees who have more than 12 months in service up to 31 December 2008 at the rate of one-half of the average monthly salary of the 6-month period up to the termination for each year of service in accordance with the Labour Code, the Law on Social Insurance and related implementing guidance. Commencing from 1 January 2009, the average monthly salary used for this calculation will be revised at the end of each reporting period following the average monthly salary of the 6-month period up to the reporting date. Any changes to the accrued amount will be taken to the consolidated income statement.

3.14 Foreign currency transactions

Transactions in currencies other than the Company’s reporting currency (VND) are recorded at the commercial bank’s exchange rate ruling at the transaction date. At the end of the period, monetary assets and liabilities denominated in foreign currencies are translated at inter-bank exchange rates ruling at the consolidated balance sheet date. All realized and unrealized foreign exchange differences are taken to the consolidated income statement.

3.15 Treasury shares

Owners’ equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss upon purchase, sale, issue or destruction of the Company’s own equity instruments.

3.7 Investment properties

Investment properties are stated at cost, inclusive of related transaction fees less accumulated depreciation.

Subsequent expenditure relating to an investment property that has already been recognized is added to the net book value of the investment property when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing investment property, will flow to the Company.

Depreciation and amortisation of the property is calculated on a straight-line basis over the estimated useful life of each asset. Amortization period is 20 years.

3.8 Operating lease

Rentals respective to operating leases are included in the consolidated income statement on a straight-line basis over the term of the lease.

3.9 Financial investments and provision for diminution in price of securities Circular No. 95/2008/TT-BTC allows securities companies to account for securities investments under either cost accounting method or fair value accounting method. Accordingly, the Company chooses the cost accounting method to record its securities investments.

Trading securities and long-term investment securities are initially recognized at cost. These securities are continually recognized at cost less accumulated gains before purchase date, if any.

Provision for diminution in price of securities is made for individual stocks whose market values are lower than book values.

The market prices of listed equity securities are determined based on the matching prices on stock markets (which are average prices on Hanoi Stock Exchange and closing prices on Hochiminh Stock Exchange) as at 31 December 2011.

Market prices of unlisted equity securities are referenced to average trading prices quoted on the trading market of unlisted public companies’ securities (UPCoM) for registered members, or the average price of public quotations from at least three securities companies as at 31 December 2011 for unregistered members.

Provision for bonds are made for individual bonds based on the Company’s judgement of its recoverability in the future.

For securities which have no reference prices from the above sources, the impairment level is determined based on the financial performance and book value of securities issuers as at 31 December 2011.

3.10 Investments in associates

An associate is an entity in which the Company has significant influence but that is neither subsidiaries nor joint ventures. The Company generally deems they have significant influence if they have over 20% of the voting rights.

The Company’s investments in associates are accounted for using the equity method of accounting.

Under the equity method, the investment is carried in the consolidated balance sheet at cost plus post-acquisition changes in the

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recovered from) the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted as at the balance sheet date.

Current income tax is charged or credited to the income statement, except when it relates to items recognized directly to equity, in which case the current income tax is also taken to equity.

Current income tax assets and liabilities are offset when there is a legally enforceable right for the Company to set off current tax assets against current tax liabilities and when the Company intends to settle its current tax assets and liabilities on a net basis.

Deferred income tax

Deferred tax is provided using the liability method on temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amount for financial reporting purposes.

Deferred income tax liabilities are recognized for all taxable temporary differences, except:

► Where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which affects neither the accounting profit nor taxable profit or loss upon the incurrence of the related transaction; and

► In respect of taxable temporarily differences associated with investments in subsidiaries and associates, and capital contributions in joint ventures where timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilized, except:

► Where the deferred tax asset in respect of deductible temporary difference which arises from the initial recognition of an asset or liability which at the time of the related transaction, affects neither the accounting profit nor taxable profit or loss; and

► In respect of deductible temporarily differences associated with investments in subsidiaries, associates, and capital contributions in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilized. Previously unrecognized deferred income tax assets are reassessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled based on tax rates and tax laws that have been enacted at the balance sheet date. Deferred tax is charged or credited to the income statement, except when it relates to items recognized directly to equity, in which case the deferred tax is also dealt with in the equity account.

Deferred tax assets and liabilities are offset when there is a legally enforceable right for the Company to set off current tax assets against current tax liabilities and when they relate to income taxes levied on the same taxable entity by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

3.16 Appropriation of net profits

After making appropriation to reserve funds in accordance with the Company’s Charter and Vietnamese regulatory requirements, net remaining profit after tax is distributed in accordance with resolutions of the General Shareholders’ Meeting.

3.17 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of receipts or receivables less trade discount, concessions and sales return. The following specific recognition criteria must also be met before revenue is recognized:

Rendering of services

Revenue is recognized to the extent of work-completeness when the result of the contract can be ensured. In case when the contractual result cannot be ensured, the revenue will only be recognized to the extent of recovery of recorded expenses.

Revenue from trading securities

Revenue from trading securities are determined by the differences between selling prices and the weighted average cost of securities sold.

Repurchase and reverse repurchase agreement

Revenue is taken into the consolidated income statement on a straight-line basis over the term of agreements.

Interest

Revenue is recognized in the consolidated income statement on accrual basis (taking into account the effective yield on the asset), except for cumulative gains before purchase date (which is recognized as deductions to cost of securities) or doubtful collectability.

Dividend

Revenue is recognized when the Company’s entitlement as an investor to receive the dividend is established, except for dividends received in form of stocks, the number of received stocks is accounted for in notes to the financial statements without recognition of value of received stocks or financial revenue or an increase in investment value.

Rental income

Rental income arising from operating leases is accounted for on a straight line basis over the term of the lease.

3.18 Corporate income tax

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be paid to (or

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6. FINANCIAL INVESTMENTS

6.1 Financial investments

Company’s investment portfolio at 31 December 2010 is as followed:

Items Quantity Book value In comparison with market value Market value

Appreciation Depreciation

I. Short-term investment

Trading securities 48,217,355 1,052,561,099,307 15,286,727,179 (303,123,545,516) 764,724,280,970

Listed shares 44,540,705 873,223,160,334 15,286,727,179 (292,141,620,516) 596,368,266,998

Unlisted shares 3,017,150 93,173,000,000 - (10,981,925,000) 82,191,075,000

Bonds

- Portion whose market value is determinable. - - - - -

- Portion whose market value is undeterminable (*) 659,500 86,164,938,973 - - 86,164,938,973

Fund certificates - - - - -

Other short-term investments - 476,649,028 - - 476,649,028

Term deposits due in more than 3 months - 476,649,028 - - 476,649,028

48,217,355 1,053,037,748,335 15,286,727,179 (303,123,545,516) 765,200,929,998

II. Long-term investments

Securities available for sale 22,456,423 1,128,856,979,464 3,163,320,881 (166,853,124,408) 965,167,175,937

Listed shares 9,195,965 346,141,584,971 3,163,320,881 (133,643,284,762) 215,661,621,090

Unlisted shares 6,355,458 87,791,294,397 - (14,220,179,920) 73,571,114,477

Bonds

- Portion whose market value is determinable. 600,000 63,298,865,753 - (18,989,659,726) 44,309,206,027

- Portion whose market value is undeterminable (*) 6,305,000 631,625,234,343 - - 631,625,234,343


Securities held-to-maturity - - - - -

Listed shares - - - - -

Unlisted shares - - - - -

Bonds - - - - -


Other long-term investment 32,622,499 749,788,390,000 - (833,500,000) 748,954,890,000

When the market value is determinable based on net asset value 22,355,499 226,171,390,000 - (833,500,000) 225,337,890,000

- Vissai Cement Central Region Joint stock Com-pany 900,000 10,000,000,000 - (833,500,000) 9,166,500,000

- Petrolimex Group Commercial J.S Bank 19,955,500 201,171,400,000 - - 201,171,400,000

- SSI Real Estates Joint stock Company 1,499,999 14,999,990,000 - - 14,999,990,000

When the market value is not determinable (*) 10,267,000 523,617,000,000 - - 523,617,000,000

- Hoang Anh Gia Lai Rubber Joint Stock Company 10,267,000 523,617,000,000 - - 523,617,000,000

55,078,922 1,878,645,369,464 3,163,320,881 (167,686,624,408) 1,714,122,065,937

(*) Market value of securities whose market values are undeterminable is stated at their carrying value due to unavailability of market information.

3.19 Reserves

In accordance with the Circular No. 11/2000/TT-BTC issued by Ministry of Finance on 1 February 2000, the Company uses retained earnings to create reserves as follow:

Percentage of profit after tax Maximum level

Capital Supplementary Reserve 5% 10% of chartered capital

Statutory Reserve 5% 10% of chartered capital

Other reserves and funds are created in accordance with resolutions of Shareholders’ Meetings.

4. CASH AND CASH EQUIVALENTS

31 December 2011 (VND) 31 December 2010 (VND)

Cash in hand 152,163,551 339,243,758

Cash at bank 729,943,429,280 1,242,435,860,037

In which:

- Cash at bank of the Company 88,757,731,296 239,629,743,431

- Cash at bank of trustees 39,347,154,701 12,741,193,422

- Cash at bank for trading securities of investors (investors’ deposit) 601,838,543,283 990,064,923,184

Cash equivalents 1,215,669,218,716 1,726,436,503,749

- Term deposits due within 3 months 1,215,669,218,716 1,726,436,503,749

- Term deposits of trustees - -

1,945,764,811,547 2,969,211,607,544

5. TRADING VALUE AND TRADING VOLUME IN THE YEAR

Trading volume during the period (Units) Trading value during the period (VND)

The Company 65,499,652 2,586,798,495,325

- Shares 40,356,722 1,073,759,692,339

- Bonds 14,435,050 1,472,348,858,986

- Others (investment fund certificates) 10,707,880 40,689,944,000

Investors 2,194,096,271 55,109,028,916,344

- Shares 2,103,510,825 48,219,909,010,710

- Bonds 66,405,606 6,748,125,888,634

- Others (investment fund certificates) 24,179,840 140,994,017,000

2,259,595,923 57,695,827,411,669

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Other long-term investments represent the Company’s contributions in investees for long-term purposes.

► Petrolimex Group Commercial Joint-stock Bank formerly was the Dong Thap Muoi Commercial Joint-stock Bank, a rural bank established in 1993. In 2006, when this Bank increased their charter capital in order to become an urban bank, SSI contributed capital to the bank as a strategic shareholder and has one representative in the Board of Directors. The main activity of Petrolimex Group Commercial Joint-stock Bank is providing banking services and related financial services in Vietnam. During 2010, the Company contributed VND 99,777,500,000 more in the Bank. Percentage holding of the Company remains unchanged at 9.98%.

► On 16th December 2011, the Company contributed capital to the Hoang Anh Gia Lai Rubber Joint Stock Company. According to the contract, the Company’s capital contribution accounts for 2.62% of the chartered capital of Hoang Anh Gia Lai Rubber JSC. The main operations of the investee include: planting rubber trees and other perennials; planting and protecting forests; rubber trading, seed producing and trading; other plating services, production of fertilizers and nitrogen compounds; industrial equipment trading, mining, forestry and construction; trading of other building materials and equipment; trading of agricultural and forestry materials (except wood, bamboo), stone mining, buy, sell, consign goods; buy, sell, export rubber liquid with legal origin, production and processing of rubber; mining chemical and fertilizer mineral; exploitation and collection of peat coal, iron ore, nonferrous metals and production of precious metals, production of iron and steel.

► The investment in Vissai Cement Central Region Joint stock Company, previously Dai Viet Construction and Investment Company, was made in 2007. Main activities of this company are construction materials, interior and exterior decoration materials exploiting, producing and trading; executing, installing, improving and decorating for construction buildings.

► The Company also contributed capital in SSI Real Estates Joint stock Company in 2007 as a foundation shareholder. Currently, the Chairman of the SSI is also the chairman of SSI Real Estates Joint stock Company. Main activities of SSI Real Estates Joint stock Company are houses, industry parks, residential quarters, office buildings investment and trading; lands and offices leasing and managing services.

Company’s investment portfolio at 31 December 2010 is as followed:

Items Quantity Book value In comparison with market value Market value

Appreciation Depreciation

I. Short-term investment

Trading securities 63,825,031 1,950,141,961,736 12,009,682,811 (227,958,435,891) 1,734,193,208,656

Listed shares 44,795,733 1,156,347,569,054 12,009,682,811 (219,948,936,180) 948,408,315,685

Unlisted shares 12,908,423 571,005,729,998 - (8,009,499,711) 562,996,230,287

Bonds (*) 6,120,875 222,788,662,684 - - 222,788,662,684


Other short-term investments - 713,430,000,000 - - 713,430,000,000

Term deposits due in more than 3 months - 713,430,000,000 - - 713,430,000,000

63,825,031 2,663,571,961,736 12,009,682,811 (227,958,435,891) 2,447,623,208,656

II. Long-term investments

Securities available for sale 32,914,955 1,439,817,191,957 36,342,922,051 (73,830,181,602) 1,402,329,932,406

Listed shares 18,279,498 646,290,077,926 36,342,922,051 (61,649,284,780) 620,983,715,197

Unlisted shares 7,855,457 111,103,013,936 - (12,180,896,822) 98,922,117,114

Bonds (*) 6,780,000 682,424,100,095 - - 682,424,100,095


Securities held-to-maturity - - - - -

Listed shares - - - - -

Unlisted shares - - - - -

Bonds - - - - -


Other long-term investment 22,355,499 226,171,390,000 - - 226,171,390,000

- Petrolimex Group Commercial J.S Bank 19,955,500 201,171,400,000 - - 201,171,400,000

- Vissai Cement Central Region Joint stock Company 900,000 10,000,000,000 - - 10,000,000,000

- SSI Real Estates Joint stock Company 1,499,999 14,999,990,000 - - 14,999,990,000

55,270,454 1,665,988,581,957 36,342,922,051 (73,830,181,602) 1,628,501,322,406

(*) Market value of securities whose market values are undeterminable is stated at their carrying value due to unavailability of mar-

ket information.

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Provision for long-term investments Items Quantity Book value Depreciation in comparison

with market valueMarket value

Listed shares

DCC 398,470 11,324,672,774 (7,539,207,774) 3,785,465,000

HAG 3,571,654 168,907,913,443 (99,260,660,445) 69,647,252,998

PDN 1,134,721 38,486,340,864 (5,125,543,464) 33,360,797,400

DBC 1,262,133 31,299,191,230 (15,522,528,730) 15,776,662,500

ELC 195,000 7,650,000,000 (1,507,500,000) 6,142,500,000

FPT 338,910 17,563,228,640 (719,401,640) 16,843,827,000

PVD 938,836 34,387,038,072 (3,216,930,976) 31,170,107,096

VNM 154,770 14,139,116,732 (751,511,732) 13,387,605,000

7,994,494 323,757,501,755 (133,643,284,762) 190,114,216,994Unlisted shares

Viet Tin JSC 6,299 6,654,826,397 (1,453,742,100) 5,201,084,297

Viet thai JSC 700,000 10,500,000,000 (452,200,000) 10,047,800,000

An Lac Real Estate JSC 3,750,000 37,500,000,000 (637,500,000) 36,862,500,000

Viglacera Dap Cau Glass JSC 800,000 15,200,000,000 (9,344,000,000) 5,856,000,000

Cat Ba Tourism JSC 999,999 11,999,988,000 (2,177,997,820) 9,821,990,180

Noi Bai Commodity Service JSC 49,160 2,686,480,000 (154,740,000) 2,531,740,000

6,305,458 84,541,294,397 (14,220,179,920) 70,321,114,477 Bonds

Vinashin bonds 600,000 63,298,865,753 (18,989,659,726) 44,309,206,027

600,000 63,298,865,753 (18,989,659,726) 44,309,206,027Capital contribution

Vissai Cement Central Region Joint Stock Company 900,000 10,000,000,000 (833,500,000) 9,166,500,000

900,000 10,000,000,000 (833,500,000) 9,166,500,000

Total (167,686,624,408)

Provision for diminution in price of securities is made for individual stocks whose market values are lower than book values.

The market prices of listed equity securities are determined based on the matching prices on stock markets (which are average prices on Hanoi Stock Exchange and closing prices on Hochiminh Stock Exchange) as at 31 December 2011.

Market prices of unlisted equity securities are referenced to average trading prices quoted on the trading market of unlisted public companies’ securities (UPCoM) for registered members, or the average price of public quotations from at least three securities companies as at 31 December 2011 for unregistered members.

For securities which have no reference prices from the above sources, the impairment level is determined based on the financial performance and book value of securities issuers as at 31 December 2011. Provision for bonds is made for each individual bond based on the Company’s assessment of its recoverability in the future. Accordingly, the Company has made provision for Vinashin bonds held by the Company as at 31 December 2011 at the rate of 30% of the total investment value.

6.2 Provision for investment diminution

Provision for short-term investments

Items Quantity Book value Depreciation in comparison with market value

Market value

Listed shares

DAC 47,366 2,251,325,570 (1,351,371,570) 899,954,000

DBC 2,728,233 67,877,636,822 (33,774,724,322) 34,102,912,500

DCC 226,120 6,131,898,718 (3,983,758,718) 2,148,140,000

DTL 617,180 14,032,594,892 (4,528,022,892) 9,504,572,000

ELC 1,835,960 74,662,992,562 (16,830,252,562) 57,832,740,000

FPT 815,412 40,824,272,333 (472,914,549) 40,351,357,784

HAI 251,906 7,509,687,439 (1,463,902,991) 6,045,784,448

NSC 1,620,363 70,117,538,742 (3,744,901,289) 66,372,637,453

NSP 418,273 4,182,730,000 (3,513,493,200) 669,236,800

NTP 646,230 30,685,666,984 (9,553,945,984) 21,131,721,000

PDN 105,750 3,213,235,281 (104,185,281) 3,109,050,000

PRUBF1 4,754,730 30,164,291,773 (6,390,641,773) 23,773,650,000

SSC 1,845,924 62,566,430,675 (12,300,712,476) 50,265,718,199

SVC 1,401,372 43,394,760,568 (18,870,750,569) 24,524,009,999

TMT 2,500,238 65,813,021,526 (48,546,140,241) 17,266,881,285

VCS 1,743,992 52,897,804,468 (34,235,970,207) 18,661,834,261

VFMVF4 14,226,250 124,687,062,241 (79,163,062,241) 45,524,000,000

VHL 142,439 7,860,558,847 (3,544,657,147) 4,315,901,700

VSH 2,000,000 25,843,964,013 (9,243,964,013) 16,600,000,000

Others 599,354 21,246,448,295 (524,248,490) 20,722,199,805

38,527,092 755,963,921,749 (292,141,620,516) 463,822,301,233

Unlisted shares

E Den JSC 199,650 4,650,000,000 (2,753,325,000) 1,896,675,000

AGF Delta Investment and Construction JSC 200,000 2,000,000,000 (1,905,600,000) 94,400,000

Pythis JSC 190,000 3,268,000,000 (323,000,000) 2,945,000,000

Flux Fertilizer JSC 2,000,000 53,000,000,000 (6,000,000,000) 47,000,000,000

2,589,650 62,918,000,000 (10,981,925,000) 51,936,075,000

Bonds - - - -

Total (303,123,545,516)

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9. PROVISION FOR DOUBTFUL RECEIVABLES

Current year (VND) Prior year (VND)

Beginning balance - -

Reversion of provision during the year - -

Charge of provision during the year 17,936,746,575 -

Ending balance 17,936,746,575 -

The provision for doubtful receivables at 31 December 2011 comprises provision for coupon receivable of Vinashin bonds which has been accrued since 2010, and provision for receivables from reversed repurchase argreements.

10. OTHER CURRENT ASSETS

31 December 2011 (VND)


Advances to employees 1,828,282,441 1,904,906,217

Short-term prepaid expenses 5,334,439,840 14,234,333,847

Short-term pledges and deposits 549,105,000 553,717,000

Corporate income tax deductible 3,347,725,304 -

Value-added tax deductible 85,921,890 -

11,145,474,475 16,692,957,064

11. TANGIBLE FIXED ASSETS

Buildings and architectures (VND)

Office machineries (VND)

Means oftransportation (VND)

Office equipments (VND)

Total (VND)

CostAs at 01/01/ 2011 2,609,391,520 68,300,664,775 16,875,816,403 1,768,519,197 89,554,391,895 Increases - 11,427,075,154 - 140,639,200 11,567,714,354

Purchases - 11,427,075,154 - 140,639,200 11,567,714,354Decreases - (3,266,824,370) - - (3,266,824,370)

Disposals - (3,266,824,370) - - (3,266,824,370)As at 31/12/2011 2,609,391,520 76,460,915,559 16,875,816,403 1,909,158,397 97,855,281,879Accumulated depreciationAs at 01/01/ 2011 855,111,469 38,270,847,918 8,760,878,331 1,248,315,376 49,135,153,094 Increases 449,269,148 12,449,203,709 2,671,832,562 268,029,468 15,838,334,887

Charges 449,269,148 12,449,203,709 2,671,832,562 268,029,468 15,838,334,887Decreases - (2,787,100,441) - - (2,787,100,441)

Disposals - (2,787,100,441) - - (2,787,100,441)As at 31/12/2011 1,304,380,617 47,932,951,186 11,432,710,893 1,516,344,844 62,186,387,540Net book valueAs at 01/01/2011 1,754,280,051 30,029,816,857 8,114,938,072 520,203,821 40,419,238,801 As at 31/12/2011 1,305,010,903 28,527,964,373 5,443,105,510 392,813,553 35,668,894,339

7. SHORT-TERM INVESTMENTS OF TRUSTEES



Listed shares 109,975,989,696 81,586,751,516

Unlisted shares 9,477,000,000 29,780,710,000

Others - 234,000,000

119,452,989,696 111,601,461,516

8. SHORT-TERM RECEIVABLES



Receivables from investors 291,054,053,897 701,200,855,316

- Advances to investors 26,751,833,547 38,485,273,958

- Receivables from cooperation and margin contracts 260,956,194,312 657,874,361,876

- Receivables from advisory services 2,323,014,127 1,697,000,000

- Receivables from portfolio and fund management services 625,397,883 487,203,174

- Other receivables 397,614,028 2,657,016,308

Advances to suppliers 2,223,755,828 5,381,629,435

Receivables from securities activities 677,728 12,115,851

- Receivables from Stock Exchanges - -

- Receivables from investors regarding securities trading activities 677,728 12,115,851

Other receivables 122,281,746,055 126,545,864,145

- Interest receivables 6,586,311,679 34,830,697,536

- Receivables from securities issuers (bond coupons, dividends, bill interests) 51,594,391,003 48,910,424,579

- Receivables from reversed repurchase agreements 54,005,000,000 28,897,544,000

- Fee receivables from cooperation contracts 6,440,323,295 11,148,249,713

- Social insurance receivable 75,982,084 -

- Other receivables 3,579,737,994 2,758,948,317

415,560,233,508 833,140,464,747

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14. INVESTMENTS IN ASSOCIATES

Investments in associate of the Company as at 31 December 2011 and for the year then ended are as follows:

Voting rights of the Company (%)

Holding of the Company (%)



SSI Vision Fund 37.94% 37.94% 483,846,448,559 567,438,087,550

Ben Tre Aquaproduct Import and Export JSC

28.45% 27.12% 112,461,220,086 --

Hung Vuong Corporation 20.01% 20.00% 410,758,104,260 -

Pan-pacific Corporation 21.90% 21.48% 54,939,092,152 --

1,062,004,865,058 567,438,087,550

Profit/ (loss) from investment in associates (including goodwill/negative goodwill at acquisition and share of profit/loss from the acqui-sition date) charged to the consolidated income statement for the year 2011 under the equity method of accounting are shown below:

Current year (VND)

SSI Vision Fund (83,591,638,990)

Ben Tre Aquaproduct Import and Export JSC (584,637,381)

Hung Vuong Corporation 29,592,849,145

Pan-pacific Corporation 17,984,285,906

Net results (36,599,141,321)

15. LONG-TERM PREPAID EXPENSES



Prepaid advisory fees 14,423,668,784 21,949,061,192

Office maintenance and equipment expense 5,858,762,426 8,747,650,713

20,282,431,210 30,696,711,905

16. PAYMENT FOR SETTLEMENT ASSISTANCE FUND



Initial payment and annual supplements 11,620,436,954 9,120,436,954

Annual allocated interest 1,269,495,696 1,269,495,696

12,889,932,650 10,389,932,650

12. INTANGIBLE FIXED ASSETS

Softwares (VND) Land use right with indefinite life (VND)

Other tangible fixed assets (VND)

Total (VND)

Cost

As at 01/01/2011 34,424,368,491 109,671,558,000 1,689,426,688 145,785,353,179

Increases 8,444,328,660 - - 8,444,328,660

Purchases 8,444,328,660 - - 8,444,328,660

Decreases - - (32,850,000) (32,850,000)

As at 31/12/2011 42,868,697,151 109,671,558,000 1,656,576,688 154,196,831,839

Accumulated depreciation

As at 01/01/2011 15,440,654,216 - 1,511,098,504 16,951,752,720

Increases 8,660,905,756 - 75,826,500 8,736,732,256

Charges 8,660,905,756 - 75,826,500 8,736,732,256

Decreases - - (32,850,000) (32,850,000)

As at 31/12/2011 24,101,559,972 - 1,554,075,004 25,655,634,976

Net book value:

As at 01/01/2011 18,983,714,275 109,671,558,000 178,328,184 128,833,600,459

As at 31/12/2011 18,767,137,179 109,671,558,000 102,501,684 128,541,196,863

13. INVESTMENT PROPERTIES

Buildings and lands (*) (VND) Others investment properties (VND)

Total (VND)

Cost

As at 01/01/2011 33,671,559,285 - 33,671,559,285

Increases 248,825,454,315 - 248,825,454,315

Purchases 248,825,454,315 - 248,825,454,315

Decreases - - -

As at 31/12/2011 282,497,013,600 - 282,497,013,600

Accumulated depreciation

As at 01/01/2011 - - -

Increases 7,109,857,997 - 7,109,857,997

Charges 7,109,857,997 - 7,109,857,997

Decreases - - -

As at 31/12/2011 7,109,857,997 - 7,109,857,997

Net book value:

As at 01/01/2011 33,671,559,285 - 33,671,559,285

As at 31/12/2011 275,387,155,603 - 275,387,155,603

(*) Included in this item are six (06) buildings in the United States, which were bought by SSI International Company for the purpose of leasing. The cost of those assets is USD 13,769,423.66, in which land value is USD 4,010,038.09 and building value is USD 9,759,385.57. Revenue from leasing in 2011 is VND 3,443,942,428.

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Summary of the Company’s statutory obligations to National Budget for the year ended 31 December 2011 is presented as follows:

No. Items 31 December 2010 (VND)

Payable in the period (VND)

Paid in the period (VND)


I Tax 26,349,567,740 66,148,749,099 90,203,648,127 2,294,668,712

1 Value added tax on domestic goods and ser-vices

1,565,617,793 8,473,729,496 9,660,834,269 378,513,020

2 Value added tax on imported goods - - - -

3 Import tax - - - -

4 Corporate income tax 17,494,080,074 2,058,771,540 22,900,576,918 (3,347,725,304)

5 Land tax - - - -

6 Land Rentals - - - -

7 Other taxes 7,289,869,873 55,616,248,063 57,642,236,940 5,263,880,996

Personal income tax (PIT) 2,527,026,731 20,562,101,642 20,340,334,416 2,748,793,957

PIT of investors 3,214,936,441 17,365,196,738 20,168,721,249 411,411,930

Business registration tax - 18,000,000 18,000,000 -

Others 1,547,906,701 17,670,949,683 17,115,181,275 2,103,675,109

II Other payables - 10,513,643 10,513,643 -

1 Fees and charges - - - -

2 Others - 10,513,643 10,513,643 -

26,349,567,740 66,159,262,742 90,214,161,770 2,294,668,712

20. ACCRUED EXPENSES


Accrued convertible bond interest expenses - 62,483,242,021

Accrued payables to Stock Exchange and Securities Custody Center 2,159,660,934 3,758,643,012

Payable to Custodian Bank 21,000,000 -

Payables to PVFC 7,755,626 91,874,435

Accrued expenses on reverse repurchase contracts and cooperation contracts 1,579,498,264 181,113,793

Payable to training, seminars and consulting expenses 260,000,000 1,400,000,000

Audit fee payable 896,079,600 592,770,750

Commission payable to partners 1,011,901,617 -

Others 246,427,512 538,578,185

6,182,323,553 69,046,222,196

17. SHORT-TERM LOANS

Interest rate

31 December 2010 Increase during the year

Decrease during the year

31 December 2011

Loans from banks - 60,000,000,000 (60,000,000,000) -

Loans from EXIMBANK 16% p.a - 60,000,000,000 (60,000,000,000) -

Loans from other entities 2,000,000,000,000 - (2,000,000,000,000) -

Convertible bond SSICB2010 4% p.a 2,000,000,000,000 - (2,000,000,000,000) -

2,000,000,000,000 60,000,000,000 (2,060,000,000,000) -

Balance of short-term loans as at 31 December 2010 was the principal of 2,000,000 convertible bonds coded SSICB2010 whose face value was VND 1,000,000 and coupon rate was at 4% per annum. On 28 March 2011, the Company repaid the principal and coupon in full to the bondholders.

18. ADVANCES FROM CUSTOMERS


Advances regarding advisory services 4,995,842,440 4,933,308,000

Advances regarding securities purchases of customers 65,009,400,000 45,180,000,000

Management fee prepaid by SSI Vision Fund to SSIAM 3,484,586,392 6,269,545,469

73,489,828,832 56,382,853,469

19. STATUTORY OBLIGATIONS


Value added tax (VAT) 378,513,020 1,565,617,793

Corporate income tax (*) - 17,494,080,074

Personal income tax 3,160,205,887 5,741,963,172

Other taxes 2,103,675,109 1,547,906,701

5,642,394,016 26,349,567,740

(*) Estimated current corporate income tax expense is presented in detail in Note 31.

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24. BONUS AND WELFARE FUND

VND

As at 1st January 2011 69,431,253,766

Creation of bonus and welfare fund 50,701,098,116

Utilization of bonus and welfare fund 30,067,551,245

As at 31 December 2011 90,064,800,637

Bonus and welfare fund are mainly utilized for rewarding and salary to the Company’s Management, Board of Directors, Board of Supervision, employees and other welfare purposes.

25. OTHER LONG-TERM PAYABLES



Petrol Vietnam Securities JSC. - 13,000,000,000

Other long-term pledges and deposits 577,091,185 68,415,136

577,091,185 13,068,415,136

Balance of other long-term payables is the deposit of Petrol Vietnam Securities & Investment Company (PSI) at Saigon Securities Incorporation for the purpose of trading securities with Saigon Securities Incorporation.

26. FUNDS RECEIVED FROM TRUST INVESTORS



Funds received from trust investment portfolio management contracts 122,504,095,276 124,597,648,444

122,504,095,276 124,597,648,444

All trust management contracts were managed by SSI Asset Management Company Limited, a subsidiary of the Company.

21. OTHER SHORT-TERM PAYABLES


Payables of repurchase contracts 155,589,925,000 -

Payables of cooperation contracts 204,905,766,183 22,311,739,854

Payables to foreign customers 13,175,868,406 16,359,209,923

Short-term deposits of investors 4,685,000,000 -

Payables regarding securities purchases 36,356,801,104 -

Other payables 1,965,957,671 9,944,585,682

Total balance - Reported 416,679,318,364 48,615,535,459

Short-term unearned revenue (*) - (2,354,447,214)

Total balance - Restated 416,679,318,364 46,261,088,245

(*) In accordance with the guidance in the Circular 162/2010/TT-BTC issued by the Ministry of Finance on 20 October 2010, the Unearned revenue should be presented separately from Other short-term payables.

22. PAYABLES RELATING TO SECURITIES TRADING ACTIVITIES


Payable to Hochiminh Stock Exchange 21,916,153,444 37,901,932,740

Securities trading payables to investors 555,811,471,398 797,609,275,510

- Deposits for securities trading of investors at head office 415,294,012,656 502,359,236,030

- Deposits for securities trading of investors at Hanoi branch 60,188,344,404 129,743,140,621

- Deposits for securities trading of investors at other branches and offices 80,329,114,338 165,506,898,859

577,727,624,842 835,511,208,250

23. DIVIDEND AND INTEREST PAYABLES


Dividend and coupon payables to other shareholders 4,045,926,173 2,480,517,407

Dividends payable to SSI shareholders 2,430,992,250 1,780,947,250

6,476,918,423 4,261,464,657

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27. OWNERS’ EQUITY

27.1 Movements of Owners’ Equity

Chartered capital (VND) Share premium (VND) Other owners’ capital (VND) Treasury shares (VND) Financial and statutory reserves (VND)

Undistributed earnings (VND)

Total (VND)

For the year ended 31 December 2011

As at 1st January 2011 3,511,117,420,000 340,921,476,378 - (12,365,677,000) 220,524,469,842 1,399,114,338,962 5,459,312,028,182

Capital supplement due to issuance of additional shares 15,000,000,000 - - - - - 15,000,000,000

Creation of statutory reserve and provision according to resolution of General Shareholders’ Meeting for 2010 - - - - 68,858,711,594 (68,858,711,594) -

Creation of welfare fund according to resolution of Shareholders' Meeting - - - - - (50,701,098,116) (50,701,098,116)

Distribution of 10% dividend for 2010 - under Resolution No, 01/2011/NQ-DHDCD dated 28 April 2011 - - - - - (348,111,742,000) (348,111,742,000)

Adjustment of Corporate Income Tax due to Tax Finalization for year 2010 - - - - - 1,929,271,735 1,929,271,735

Purchases of treasury shares - - - (76,225,609,000) - - (76,225,609,000)

Additional corporate income tax for year 2010 according to Decision 4992/QD-CT by Department of Taxation - - - - - (50,179,757) (50,179,757)

Other capital supplement since an associate purchased treasury shares - - 383,614,879 - - 383,614,879

Profit after tax for the year ended 31 December 2011 - - - - - 79,129,012,745 79,129,012,745

As at 31 December 2011 3,526,117,420,000 340,921,476,378 383,614,879 (88,591,286,000) 289,383,181,436 1,012,450,891,924 5,080,665,298,616

Chartered capital (VND) Share premium (VND) Treasury shares (VND) Financial and statutory reserves (VND)

Undistributed earnings (VND) Total (VND)

For the year ended 31 December 2010

As at 1 January 2010 1,533,334,710,000 2,095,966,265,902 (449,664,524) 140,116,480,248 1,049,533,539,162 4,818,501,330,788

Additions to Corporate Income tax in pursuant with Tax Finalization 2008 and 2009 (2,776,148,543) (2,776,148,543)

Supplemental capital due to conversion of convertible bonds 222,224,000,000 - - - 222,224,000,000

Bonus issuance to existing shareholders, ratio 1:1, sourced by Share premium 1,755,558,710,000 (1,755,558,710,000) - - - -

Purchases of treasury shares - - (12,365,677,000) - - (12,365,677,000)

Sales of treasury shares - 513,920,476 449,664,524 - - 963,585,000

Creation of statutory and financial reserve according to resolution of shareholders’ meetings, made out of after-tax profit 2009 - - - 80,407,989,594 (80,407,989,594) -

Creation of welfare fund according to resolution of shareholders’ meetings, made out of after-tax profit 2009 - - - - (80,407,989,594) (80,407,989,594)

Distribution of 2nd dividend 2009 according to resolution of shareholders’ meetings - - - - (175,555,871,000) (175,555,871,000)

5% deferred tax of the unemployment allowance reserve excluded in calculation of Corporate income tax in 2008, - - - - 141,682,596 141,682,596

Profit after tax for year 2010 - - - - 688,587,115,938 688,587,115,938

As at 31 December 2010 3,511,117,420,000 340,921,476,378 (12,365,677,000) 220,524,469,842 1,399,114,338,962 5,459,312,028,182

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28. REVENUE


Revenue from business operations 848,048,772,890 1,503,616,689,880

Revenue from brokerage services 96,005,005,216 176,043,714,129

Revenue from securities investments and capital contribution 227,702,451,908 710,010,595,072

- Dividends 102,012,851,566 85,226,610,964

- Bond coupons 76,681,221,020 86,296,822,398

- Bill coupons - 238,888,889

- Gains from sales of shares and bond 27,069,379,734 513,321,632,833

- Gains from securities portfolio trusted to SSIAM 21,062,545,191 19,363,775,626

- Gains from other investment activities 876,454,397 5,562,864,362

Revenue from underwriting services 6,420,000,000 13,140,023,320

Revenue from investment portfolio management services for trust investors 18,328,050,969 19,811,488,075

Revenue from advisory services 38,076,296,310 108,242,078,334

Revenue from securities custody services 2,487,230,802 2,421,084,957

Revenue from property lease 4,478,427,405 930,873,701

Others 454,551,310,280 473,016,832,292

- Deposit interest 349,915,821,340 363,863,270,171

- Revenue from financing services 76,286,827,390 108,110,455,716

- Others 28,348,661,550 1,043,106,405

Deductions 5,850,000 250,000,000

Net revenue 848,042,922,890 1,503,366,689,880

27.2 Additional information for Report on Movement of Owner’s Equity

Items Note

1 - Dividend proposed or announced after the report date but before the issuing date None

2 - Cumulative unrecorded dividend of preference stocks None

3 - Incomes and expenses, profit or loss that are recognized directly into Owner’s Equity None

27.3 Treasury shares

31 December 2011 31 December 2010

Number of shares allowed to issue 352,611,742 351,111,742

Number of shares issued 352,611,742 351,111,742

Issued shares whose capital was fully contributed 352,611,742 351,111,742

- Ordinary shares 352,611,742 351,111,742

- Preference shares - -

Issued shares issued whose capital was not fully contributed - -

- Ordinary shares - -


Number of treasury shares (3,000,000) (399,770)

Treasury shares held by the Company (3,000,000) (399,770)

- Ordinary shares (3,000,000) (399,770)


Treasury shares held by subsidiaries of the Company - -

- Ordinary shares - -


Number of shares under circulation 349,611,742 350,711,972

- Ordinary shares 349,611,742 350,711,972


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The estimated current corporate income tax for the year ended 31 December 2011 and the year end 31 December 2010 is represented in the table below:


Profit before tax 126,604,379,877 902,819,486,257

Adjustments (216,926,467,105) (142,580,659,777)

Adjustments to increase accounting profit 82,304,498,347 20,496,200,219

- Loss from subsidiaries - 386,803,686

- Provision expenses for unlisted share 45,025,264,646 20,109,396,533

- Loss from associates 36,599,141,321 -

- Non-deductible expenses 680,092,380 -

Adjustments to decrease accounting profit (299,230,965,451) (163,076,859,996)

- Profit from subsidiaries (17,488,856,427) (27,819,647,766)

- Profit from associates - (2,736,427,943)

- Income from CIT exempted activities – Dividends (100,209,611,566) (76,134,278,797)

- Reversion of provision expenses for unlisted shares ( taxed in prior year) (20,109,396,533) (55,574,822,490)

- Reversion of provision expenses of associates (160,611,417,925) -

- Severance benefit expenses created before 2008, taxable in the current year (811,683,000) (811,683,000)

Estimated current taxable income (90,322,087,228) 760,238,826,480

Tax rate 25% 25%

- Estimated CIT expenses of the Parent Company - 190,059,706,620

- Estimated CIT expenses of the subsidiaries 3,937,863,518 5,640,977,343

Current CIT payable 3,937,863,518 195,700,683,962

Opening CIT Payables 17,494,080,074 48,781,140,010

Adjustment for prior year CIT (1,929,271,735) 3,342,878,926

Additional CIT for 2010 according to Decision 4992/QD-CT by the Department of Taxation 50,179,757 -

CIT paid in the period (22,900,576,918) (230,330,622,825)

Ending CIT payables (3,347,725,304) 17,494,080,074

29. OPERATING EXPENSES


Brokerage and custody expenses 27,024,047,794 35,971,502,034

Securities investment expenses 112,128,653,441 38,178,928,212

Provision expenses 169,021,552,430 185,985,595,550

Capital costs 96,018,703,656 109,003,096,841

Investment advisory, financial advisory and other advisory expense 403,560,250 1,341,597,990

Other direct expenses for operating activities 252,177,221,777 221,844,852,008

- Staff costs 112,668,098,962 104,823,936,168

- Office supplies 3,014,796,536 4,429,956,308

- Depreciation and amortization 36,429,144,908 26,093,891,419

- Outsourced services 65,943,561,622 55,214,691,945

- Office rental 32,629,956,289 29,445,252,699

- Other expenses 1,491,663,460 1,837,123,469

656,773,739,348 592,325,572,635

30. GENERAL AND ADMINISTRATIVE EXPENSES


Staff costs 9,113,451,121 8,831,154,274

Depreciation and amortization 334,425,000 954,118,418

Provision expense 17,936,746,575 -

Outsourced services 554,236,050 1,360,316,914

27,938,858,746 11,145,589,606

Provision expense is the impairment for coupon receivable of Vinashin bonds which were accrued in 2010 and provision for receivables from reversed repurchase agreements. Details are presented in the Note 9.

31. CORPORATE INCOME TAX (CIT)

Corporate income tax

The Company’s tax reports are subject to examination by the tax authorities. As the application of tax laws and regulations to various types of transactions is susceptible to various interpretations, the amounts reported in the financial statements are subjected to later change according to final determination of the tax authorities.

31.1 Current corporate income tax

The current tax liability is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated income statement because it excludes items of income or expenses that are taxable or deductible in other years as well as items which are not taxable or deductible, The Company’s liability for current tax is calculated using tax rates that have been enacted by the balance sheet date.

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33. FINANCIAL RISK MANAGEMENT POLICIES

Risk management is integral to the whole business of the Company. The Company has a system of controls in place to maintain an acceptable balance between the cost of risks occurring and the cost of managing the risks. The Management continually monitors the Company's risk management process to ensure that an appropriate balance between risk and control is achieved.

Management reviews and agrees policies for monitoring each of these risks associated with business activities which are summarized below.

33.1 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise four types of risk: interest rate risk, currency risk, commodity price risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, short-term and available-for-sale investments.

The sensitivity analyses in the following sections relate to the position as at 31 December 2011 and 31 December 2010. The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant.

In calculating the sensitivity analyses, the Management assumed that:

► The sensitivity of the balance sheet relates to available-for-sale debt instrument; ► The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks based on the financial assets and financial liabilities held by the Company and its subsidiaries at 31 December 2011 and 31 December 2010.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to market risk for changes in interest rate relates primarily to the Company’s cooperation contracts, trade and other receivables, cash and short-term deposits and financial loans and borrowings. These investments are mainly short term in nature and they are not held for speculative purposes. Financial liabilities has fixed interest rates.

The Company manages interest rate risk by looking at the competitive structure of the market to identify a proper interest rate policy which is favorable for its purposes within its risk management limits.

Interest rate sensitivity

No analysis on interest sensitivity was performed for the year ended 31 December 2011 since a significant portion of borrowings are fixed rate during that period. Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities in which revenue or expense is denominated in a different currency from the Company’s accounting currency.

Tax losses carried forward

The Company is entitled to carry tax losses forward to offset against taxable profits arising within five years subsequent to the year in which the loss was incurred. At the balance sheet date, the Company has accumulated tax losses of VND 90,322,087,228 which is available for offset against future taxable profits. Details are as follows:

Originating year Can be utilized up to Tax loss amount (*) (VND)

Utilized up to 31 December 2010 (VND)

Unutilized at 31 Decem-ber 2011 (VND)

2011 2016 (90,322,087,228) - (90,322,087,228)

Total (90,322,087,228) - (90,322,087,228)

(*) Estimated tax loss as the Company’s Corporate Income Tax declared for the year ended 31 December 2011 has not been audited by the local tax authorities at the balance sheet date.

At the date of consolidated financial statements, no deferred income tax assets were recognized in respect of the tax losses carried forward because future taxable profit to use up this tax loss is not ascertained.

31.2 Deferred corporate income tax

The following are the deferred tax assets and liabilities during 2011:

Amount (VND)Deferred tax assets

As at 1 January 2011 5,532,841,362Deferred CIT expense charged to severance benefit for 2008 (202,920,750)Deferred CIT expenses of subsidiaries 3,000,624,998As at 31 December 2011 8,330,545,610

Movement of deferred CIT payable during 2011 is presented below:

Amount (VND)

Deferred tax payable

As at 1 January 2011 881,886,941

Deferred CIT expense relating to subsidiaries 2,690,898,407

Deferred CIT expense relating to associates 40,020,086,647

As at 31 December 2011 43,592,871,995

32. NON-CONTROLLING INTERESTS

Amount (VND)

As at 1 January 2011 72,881,886,941

Share of current year’s profit 3,624,222,810

As at 31 December 2011 76,506,109,799

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finance the Company’s operations and to mitigate the effects of fluctuations in cash flows.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments:

On demand (VND) Less than 3 months (VND)

From 3 months to 12 months (VND)

From 1 to 5 years (VND)

Total (VND)

31 December 2011

Loans and borrowings - - - - -

Payables relating to se-curities trading activities 555,811,471,398 21,916,153,444 - - 577,727,624,842

Accrued expenses 3,501,916,461 2,515,367,192 165,039,900 - 6,182,323,553

Other payable 220,047,509,259 196,631,809,105 - - 416,679,318,364

779,360,897,118 221,063,329,741 165,039,900 - 1,000,589,266,759

31 December 2010

Loans and borrowings - - 2,000,000,000,000 - 2,000,000,000,000

Payables relating to se-curities trading activities 797,609,275,510 37,901,932,740 - - 835,511,208,250

Accrued expenses 5,522,169,711 63,524,052,485 - - 69,046,222,196

Other payable (*) 46,237,324,493 23,763,752 - - 46,261,088,245

849,368,769,714 101,449,748,977 2,000,000,000,000 - 2,950,818,518,691

(*) Restated. Details are presented in the Note 21.

The Company assessed the concentration of risk with respect to refinancing its debt, payables regarding securities trading activities are investors’ deposits which are monitored separately from the Company’s deposits and for which the Company always maintains an available cash balance at banks.

Foreign currency sensitivity

At the reporting date, SSI Member Fund and SSI International Corporation, which are subsidiaries of the Company, possessed USD 3,459,652.21, equivalent to VND 72,057,636,230 as converted at interbank exchange rate effective on 31 December 2011 which is VND 20,828/USD. The 10% increase (or decrease) of the interbank exchange rate possibly results in an increase (or decrease) of VND 7,205,763,623 in the Company's total assets and net profit.

Equity price risk

The Company’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainty about future values of the investment securities.

At the reporting date, the fair value of listed shares is VND 793,579,840,028 (at 31 December 2010: VND 1,521,039,426,020). The 10% increase (or decrease) of market index possibly results in a respective increase (or decrease) of the Company’s operating revenue, depending on its magnitude and length as well as the Company’s ownership position of securities which have significant influence on market index.

33.2 Commodity price risk

The Company is not exposed to commodity price risk.

33.3 Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily for trade receivables) and from its financing activities, including deposits with banks and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company based on its established policy, procedures and control relating to customer credit risk management.

Outstanding customer receivables are regularly monitored. The requirement for impairment is analyzed at each reporting date on an individual basis for major clients. Due to the fact that the Company’s receivables relate to a large number of diversified customers and corresponding collateral assets, there is no significant concentration of credit risk.

Bank deposits

The Company's bank balances are mainly maintained with well-known banks in Vietnam. Credit risk from balances with banks is managed by the Company’s accounting and treasury department in accordance with the Company’s policy. The Company’s maximum exposure to credit risk for the components of the balance sheet at each reporting date is the book value. The Company evaluates the concentration of credit risk in respect to bank deposit as low.

33.4 Liquidity risk

The liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligation due to shortage of funds. The Company’s exposure to liquidity risk arises primarily from mismatches of maturities of financial assets and liabilities.

The Company monitors its liquidity risk by maintaining a level of cash and cash equivalents deemed adequate by the Management to

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a) It is classified as held for trading. A financial asset is classified as held for trading if:

It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;

There is evidence of a recent actual pattern of short-term profit-taking; or

It is a derivative (except derivative that is a financial guarantee contract or effective hedging instrument).

b) Upon initial recognition, it is designated by the entity as at fair value through profit or loss.

• Held-to-maturity investments

Held to maturity investments are non-derivative financial assets with determinable payments and fixed maturity that an entity has the positive intention and ability to hold to maturity other than:

a) Those that the entity upon initial recognition designates as at fair value through profit or loss;b) Those that the entity designates as available for sale; and c) Those meet the definition of loans and receivables.

• Receivables:

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than:

a) Those that the entity intends to sell immediately or in the near term, which shall be classified as held for trading, and those that the entity upon initial recognition designates as at fair value through profit or loss;

b) Those that the entity upon initial recognition designates as available for sale; orc) Those for which the holder may not recover substantially all of its initial investment, other than because of credit deterioration,

which shall be classified as available for sale.

• Available-for-sale financial assets:

Available for sale financial assets are those non-derivative financial assets that are designated as available for sale or are not classified as:

a) Loans and receivables;b) Held-to-maturity investments;c) Financial assets at fair value through profit or loss.

Financial liabilities

Within the scope of Circular 210/2009/TT-BTC, financial liabilities of the Company and its subsidiaries include borrowings from credit institutions, customer’s deposits, funds received from trust investors, accrued expenses and other payables.

33.5 Collaterals

At the reporting date, the Company had committed to a number of repurchase contracts. List of assets used as underlying collaterals are presented as below.

Collateralized assets Quantity Start date End date Sales value Repurchase value

BID1_206 525,000 30/12/2011 13/01/2012 52,281,600,000 52,451,700,000

BID1_206 525,000 28/12/2011 11/01/2012 52,223,325,000 52,406,025,000

BID1_206 500,000 15/12/2011 16/01/2012 49,935,000,000 50,601,000,000

HAG 10,000 24/05/2011 30/01/2012 440,000,000 685,696,000

SSIREIT 35,500 25/08/2011 30/01/2012 710,000,000 837,800,000

1,595,500 155,589,925,000 156,982,221,000

In addition to this, as at 31 December 2011, the Company held VND 4,685,000,000 as customer’s collaterals for contractual obligations of reversed repurchase contracts.

34. ADDITIONAL INFORMATION ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES UNDER CIRCULAR NO. 210/2009/TT-BTC

On 6 November 2009, the Ministry of Finance issued Circular No. 210/2009/TT-BTC providing guidance for the adoption in Vietnam of the International Financial Reporting Standards on presentation and disclosures of financial instruments (“Circular 210”) with effectiveness from financial years beginning on or after 1 January 2011.

The Circular 210 only regulates the presentation of financial statements and disclosures financial instruments, therefore, the below definitions of financial assets, financial liabilities and other relating definitions are applied solely for the preparation of this note. The Company’s assets and liabilities are still recognized and recorded in accordance with Vietnamese Accounting Standards and System applicable to securities companies.

Financial assets

In accordance with the Circular 210/2009/TT-BTC, financial assets of the Company and its subsidiaries include cash, deposits at credit institutions, trading securities, available for sale securities, long-term investments, customer receivables and other receivables (excluding advances to customers).

Financial assets within the scope of Circular 210/2009/TT-BTC are classified, for disclosures in the notes to the consolidated financial statements, are classified into either of the followings:

• Financial asset at fair value through profit or loss:

Financial asset at fair value through profit and loss is a financial asset that meets either of the following conditions:

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B09-CTCK B09-CTCK

Set out below is a comparison between book value and fair value of the Company’s financial instruments as presented in the financial statements:

Book value Provision Fair value

31 December 2011 (VND) 31 December 2010 (VND) 31 December 2011 (VND) 31 December 2010 (VND) 31 December 2011 (VND) 31 December 2010 (VND)

Financial assets

Financial assets at fair value through profit and loss 1,053,037,748,335 2,663,571,961,736 (303,123,545,516) (227,958,435,891) 765,200,929,998 2,447,623,208,656

- Held-for-trading investments 1,052,561,099,307 1,950,141,961,736 (303,123,545,516) (227,958,435,891) 764,724,280,970 1,734,193,208,656

Listed shares 873,223,160,334 1,156,347,569,054 (292,141,620,516) (219,948,936,180) 596,368,266,998 948,408,315,685

Unlisted shares 93,173,000,000 571,005,729,998 (10,981,925,000) (8,009,499,711) 82,191,075,000 562,996,230,287

Bonds (*) 86,164,938,973 222,788,662,684 - - 86,164,938,973 222,788,662,684

- Held-to-maturity investments 476,649,028 713,430,000,000 - - 476,649,028 713,430,000,000

Term deposits 476,649,028 713,430,000,000 - 476,649,028 713,430,000,000

Customer receivables and other receivables 413,336,477,680 827,758,835,312 (17,936,746,575) - 395,399,731,105 827,758,835,312

Available-for-sale financial assets 1,128,856,979,464 1,439,817,191,957 (166,853,124,408) (73,830,181,602) 965,167,175,937 1,402,329,932,406

- Available-for-sale investments 1,128,856,979,464 1,439,817,191,957 (166,853,124,408) (73,830,181,602) 965,167,175,937 1,402,329,932,406

Listed shares 346,141,584,971 646,290,077,926 (133,643,284,762) (61,649,284,780) 215,661,621,090 620,983,715,197

Unlisted shares 87,791,294,397 111,103,013,936 (14,220,179,920) (12,180,896,822) 73,571,114,477 98,922,117,114

Bonds (*) 694,924,100,096 682,424,100,095 (18,989,659,726) - 675,934,440,370 682,424,100,095

Other long-term investments 749,788,390,000 226,171,390,000 (833,500,000) - 748,954,890,000 226,171,390,000

Cash and cash equivalents 1,945,764,811,547 2,969,211,607,544 - - 1,945,764,811,547 2,969,211,607,544

Total 5,290,784,407,026 8,126,530,986,549 (488,746,916,498) (301,788,617,493) 4,820,487,538,587 7,873,094,973,918

Financial liabilities (*)

Loans and borrowings - 2,000,000,000,000 - - - 2,000,000,000,000

Payables to securities trading activities 577,727,624,842 835,511,208,250 - - 577,727,624,842 835,511,208,250

Payable to securities issuers 605,427,160 2,398,853,100 - - 605,427,160 2,398,853,100

Accrued expense 6,182,323,553 69,046,222,196 - - 6,182,323,553 69,046,222,196

Fund received from trust investors 122,504,095,276 124,597,648,444 - - 122,504,095,276 124,597,648,444

Other payables 423,733,327,972 63,590,968,038 - - 423,733,327,972 63,590,968,038

Total 1,130,752,798,803 3,095,144,900,028 - - 1,130,752,798,803 3,095,144,900,028

(*) Fair value of these items is stated as book value since available information is insufficient to determine the fair value.

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B09-CTCK B09-CTCK

Balances with related parties at 31 December 2011 are:

Related party Relationship Transactions Receivables (VND) Payables (VND)

SSI Real Estates Joint stock (SSIRE) Investiture with the same Chairman

Capital contribution 14,999,990,000 -

Excercise of cooperation contracts

- 61,205,780,079

Interest payable of cooperation contract

- 180,579,666

Nguyen Duy Hung Company Ltd, Chairman of SSI Board of Director is capital contributor of the limited company

Excercise of cooperation contracts

- 29,453,404,689

Interest payable of cooperation contract

- 87,728,473

ANZ Bank Strategic shareholder

Current accounts of investors 531,443,562 -

Current accounts of the Company

2,315,082,474 -

Pan Pacific Corporation General Manager of Pan Pacific Corporation is Head of the Board of Supervision of SSI

Business cooperation value - 37,731,245,000

Advance of securities sales - 50,100,000,000

Office rental - 36,036,154

Business cooperation interest receivable

- 367,211,321

Capital contribution under equity method of accounting

54,939,092,152 -

Ben Tre Seafood JSC Associate Company Capital contribution under equity method of accounting

112,461,220,056 -

Business cooperation receivable

7,153,858,819 -

Business cooperation interest receivable

5,811,934 -

Hung Vuong Seafood JSC Associate Company Capital contribution under equity method of accounting

410,758,104,260 -

SSI Vision Fund Associate Company Capital contribution under equity method of accounting

483,846,448,559 -

Transactions with other related parties

Total remuneration of members of Board of Directors and Board of Management during 2011 is VND 12,426,781,224 (inclusive of personal income tax and compulsory insurance).

The fair value of the financial assets and financial liabilities are amounts at which the instrument can be exchanged in a current transaction between willing parties, other than in a mandatory liquidation or sale.

The following method and assumptions were used to estimate the fair value:

► Cash and short-term deposits, trade receivables, trade payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

► Fair value of unlisted equity securities are referenced to average trading prices quoted on the trading market of unlisted public companies’ securities (UPCoM) for registered members, or average price of public quotations from at least three securities companies as at 31 December 2011 for unregistered members.

► Fair value of bonds, loans with fixed or floating interest rate is undeterminable due to scarcity of information to apply proper pricing methods.

35. TRANSACTIONS WITH RELATED PARTIES

Significant transactions with related parties during the year of 2011 are:

Related parties Relationship Transactions Amount (VND)

SSI Vision Fund Associate Brokerage service fee 3,101,131,542

Nguyen Duy Hung Company Ltd. Chairman of SSI Board of Director is capital contributor of the limited company

Payment for principal and interest of convertible bonds

235,040,000,000

Exercise of cooperation contract 81,593,173,271

Proportionate/full liquidation of cooperation contract

52,139,768,582

Dividend payout in cash 28,705,036,000

SSI Real Estates Joint stock (SSIRE) Investiture having the same Chairman



48,814,192,344

Principal payment of reverse repurchase contract

4,892,544,000

Trading of bonds 39,150,000,000

Office rental accrued 3,933,474,133

Office rental paid 3,933,474,133

Pan Pacific Corporation

General Manager of Pan Pacific Corporation is Head of the Board of Supervisors in SSI

Payment for principal and interest of convertible bonds

83,200,000,000



38,405,017,355

Advance of securities sales 25,000,000,000

Office rental and service fees accrued 1,369,733,777

Office rental and service fees paid 1,333,697,623

Daiwa Securities Group Inc. Strategic shareholder Payment for principal and interest of convertible bonds

248,640,000,000

Dividend payout in cash 35,471,420,000

ANZ Bank Strategic Shareholder Dividend payout in cash 61,934,420,000

Ben Tre SeaFood JSC Associate Company Received dividend 4,718,595,000

Securities trading fee at SSI 223,465,912

Business cooperation receivables 104,193,212,428

Business cooperation received 98,140,439,509

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38. COMMITMENTS AND CONTINGENCIES38.1 Operating lease commitment

The Company leases office under operating lease arrangements. As at 31 December 2011, the rental payable under the operating lease agreements is as follows:


Less than 1 year 24,863,298,120 28,106,295,744

From 1 - 5 years 63,931,012,480 80,387,468,112

More than 5 years - 19,797,949,680

These leases above are based on the contract price effective at 31 December 2011.

38.2 Investment cooperation commitments

The Company participated in investment cooperation contracts with investors, in which the Company committed to contribute capital to buy shares.

The capital contribution commitments at 31 December 2011 and 31 December 2010 are as follows:

Branch 31 December 2011 (VND) 31 December 2010 (VND)

Head office (Hochiminh City) 11,805,335 3,236,811,628

Hanoi branch 736,125 148,387,638

Hai Phong - 220,393,566

Nguyen Cong Tru 9,219,850 9,363,226

Nha Trang - 13,812,998

Vung Tau - 12,332,165

Quang Ninh - 10,413,313

My Dinh - 14,970,084

Ham Long - 677,131,884

21,761,310 4,343,616,502

36. BASIC EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss after tax attributable to the ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the period.

The Company does not calculate and present diluted earnings per share due to unavailability of relevant guidance issued by Ministry of Finance or scarcity of necessary information in the active market.

The Company used the below information for calculation of basic earnings per share:

Current year Prior year

Profit after tax attributable to ordinary shareholders - VND 79,129,012,745 688,587,115,937

Weighted average of the number of ordinary share 348,408,905 347,449,772

Basic earnings per share - VND 227 1,982

37. SEGMENT INFORMATION

Brokerage and customer

services (VND)

Trading activities (VND)

Treasury activities (VND)

Fund management

(VND)

Investment banking and

others (VND)

Total(VND)

In 2011

1. Gross revenue 121,532,222,571 243,162,673,129 431,511,323,730 18,328,050,969 49,522,776,267 864,057,046,666

2. Direct expenses 30,138,949,461 339,255,247,495 108,112,221,211 313,684,996 843,876,011 478,663,979,174

3. Depreciation and allocated expenses 147,133,917,176 23,316,825,552 36,787,123,862 18,050,317,907 33,500,503,118 258,788,687,615

Profit before tax (55,740,644,066) (119,409,399,919) 286,611,978,657 (35,951,934) 15,178,397,138 126,604,379,877

As at 31 December 2011

1. Direct segment assets 767,607,023,824 3,865,893,491,022 1,406,121,827,080 159,425,542,267 2,323,014,127 6,201,370,898,320

2. Allocated segment assets 142,210,720,099 16,044,286,370 5,105,000,209 14,585,714,882 24,795,715,299 202,741,436,859

3. Unallocated assets - - - - - 103,400,863,675

Total asset 909,817,743,923 3,881,937,777,392 1,411,226,827,289 174,011,257,149 27,118,729,426 6,507,513,198,854

1. Direct segment liabilities 575,836,850,809 86,925,553,444 366,792,198,183 162,706,660,240 6,274,656,295 1,198,535,918,971

2. Allocated segment liabilities 65,456,405,245 7,384,825,207 2,349,717,111 6,713,477,461 11,412,911,684 93,317,336,708

3. Unallocated liabilities - - - - - 58,488,534,760

Total liabilities 641,293,256,054 94,310,378,651 369,141,915,294 169,420,137,701 17,687,567,979 1,350,341,790,439

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B09-CTCK

INTERNALAUDITOR’S OPINION

General opinion:

The Company’s Financial Statements of 2011 fiscal year has reflected a true and fair view on the financial situationas at 31 December 2011, the profit and loss accounts and the cashflow statement in 2011, and in accordancewith currently related documents. The Company’s working capital and the financial safety ratios were always beenmaintained as regulated by the Ministry of Finance. Differences in accounting data were immediately improved,corrected according to the suggestions from the Internal Audit.

On behalf of SSI’s Internal AuditDirector

Mr. Tran Duong Anh Viet

38.3 Margin

During 2011, the Company started rendering margin services for investors. Accordingly, the Company’s commitment to outstanding margin contracts as of 31 December 2011 and 31 December 2010 are as follows:

Branch 31 December 2011 (VND) 31 December 2010 (VND)

Head office (Hochiminh City) 2,466,749,515 -

Hanoi 4,524,849,695 -

Hai Phong 135,861,803 -

Nguyen Cong Tru 270,225,814 -

Nha Trang 69,622,417 -

Vung Tau 30,565,645 -

Quang Ninh 55,284,865 -

My Dinh 151,880,195 -

Ham Long - -

7,705,039,949 -

39. EVENT AFTER THE BALANCE SHEET DATE

On 30 January 2012, Chairman of State Securities Commission granted the Amended license No. 72/GPDC-UBCK in supplement to the Securities Trading License No. 03/GPHDKD of Saigon Securities Incorporation to acknowledge its new chartered capital of VND 3,526,117,420,000 (Three thousand five hundred and twenty six billion, one hundred and seventeen million, four hundred and twenty thousand dong).

40. COMPARATIVE INFORMATION The consolidated financial statements as at 31 December 2011 and for the year then ended are prepared in compliance with the 162/2010/TT-BTC dated 20 October 2010 by Ministry of Finance, Circular 210/2009/TT-BTC dated 6 November 2009 by Ministry of Finance, and hence, comparative figures as at 31 December 2010 have been restated to be in conformity with the presentation of this period’s consolidated financial statements.

Preparer Approver Approver





145

VIIOTHER DATA

148154156

Shareholder Information and Management Level

Corporate InformationNetwork

149148

Appendix 1: Trading statistics of Inside shareholders/ major shareholders and affiliated person

Stock tradings:

No Trader Affiliated person (AP)

Number of shares before trading

Owner-ship (*)

Number of shares after trading

Owner-ship (*)

Description

1 Pan Pacific Corp. Mr. Nguyen Van Khai, Head of BOS

999,960 0.285% 660,000 0.188% Expected date of transaction from 09/12/2010 to 09/2/2011

Transaction report on 28/1/2011

2 Pan Pacific Corp. Mr. Nguyen Van Khai, Head of BOS

660,000 0.188% - 0.000% Expected date of transaction from 17/02/2011 to 17/04/2011


3 Nguyen Duy Hung Co. Ltd.,

Major shareholder as well as be company owned by Mr. Nguyen Duy Hung, Chairman cum CEO

28,505,036 8.119% 28,705,036 8.175% Expected date of transaction from 18/11/2010 to 17/01/2011


4 Dang Phong Luu BOS Member 208,840 0.059% 8,840 0.003% Transaction registered on 21/7/2011


5 Dang Phong Luu BOS Member 8,840 0.003% 16,840 0.005% Buying shares following Employee Stock Ownership Plan in December 2011

6 Nguyen Duy Hung Chairman cum CEO - 0.000% 186,000 0.053% Buying shares following Employee Stock Ownership Plan in December 2011

7 Nguyen Hong Nam BOD Member cum Deputy CEO

15,687,968 4.468% 15,747,968 4.466% Buying shares following Employee Stock Ownership Plan in December 2011

8 Ngo Van Diem BOD Member 20,000 0.006% 40,000 0.011% Buying shares following Employee Stock Ownership Plan in December 2011

9 Nguyen Van Khai Head of BOS 100,012 0.028% 115,012 0.033% Buying shares following Employee Stock Ownership Plan in December 2011

SHAREHOLDER INFORMATION AND MANAGEMENT LEVEL

Board of Directors/ Board of Supervisory• Details on members and structure of Board of Directors (BOD) and Supervisory Board are presented in section “Organizational

Structure”.• Members of BOD, BOS and Board of Management (BOM) and employees with a corporate governance certificate:

No. Full name Position Certificate No. Date of issuance

1 Nguyen Duy Hung Chairman cum CEO 36 QTCT 21/QD-TTNC 12/11/2009

2 Nguyen Hong Nam Deputy CEO 22 QTCT 122/QD-TTNC 29/01/2010

3 Ngo Van Diem BOD’s member 10 QTCT 53/QD-TTNC 07/05/2009

4 Bui Quang Nghiem BOD’s member 29 QTCT 158/QD-TTNC 08/09/2009

5 Nguyen Van Khai Head of BOS 22 QTCT 123/QD-TTNC 29/01/2010

6 Ho Thi Huong Tra BOS’s member 18 QTCT 17/QD-TTNC 20/01/2010

7 Nguyen Thi Thanh Ha CFO 38 QTCT 21/QD-TTNC 12/11/2009

8 Nguyen Kim Long Legal & Internal control Director 31 QTCT 96/QD-TTNC 30/06/2009

9 Hoang Thi Minh Thuy Chief Accountant 61 QTCT 96/QD-TTNC 30/06/2009

10 Tran Thi Thuy Hanoi branch Director 37 QTCT 21/QD-TTNC 12/11/2009

The number of officers who have received training in corporate governance in 2011 decreased by 1 person compared to 2010 as related the Government agency did not organize any training courses during 2011 and one employee left the company. The foreign BOD members also experienced difficulties in attending the training course because the language and training materials used in the course were in Vietnamese.

Shareholder Information

Sai Gon Securities Incorporation’s stocks are listed on the Ho Chi Minh Stock Exchange with the code of SSI and are centrally deposited in the Vietnam Securities Depository – Hochiminh City branch.

Stocks: As at 30/01/2012, the Chartered Capital of SSI was VND 3,526,117,420,000 divided into 352,611,742 common stocks with the par value of VND 10,000. The Company did not issue any other but common stocks. The number of fund securities as at 30/1/2012 was 3,000,000 stocks.

Shareholders’ structure: The Company’s shareholders’ structure and the share ownership percentage rate of internal shareholders are presented in 02 appendix of this Annual Report. The data was updated with the final list of shareholders as at 31/08/2011 and the announcement on the issuance for key employees as at 29/12/2011.


151150

Trader Affiliated Person Transaction Trading Volume (VND)

ANZ Major shareholder and affiliated person of BOD member

Payment for dividend in cash 61,934,420,000

Daiwa Securities Group Inc. Major shareholder and affiliated person of BOD member

Payment for convertible bond and interest

248,640,000,000


Pan Pacific Corp. BOS member Payment principal and interest of convertible bond

83,200,000,000

Advance payment from buying securities

25,000,000,000

Payment from Cooperation contract 76,136,262,355

Payment for Cooperation contract 38,405,017,355

Expense for Warehouse rent and service charges payable

1,369,733,777

Expense paid for Warehouse rent and service charges

1,333,697,623

Nguyen Hong Nam BOD Member Payment for dividend in cash 15,687,968,000

Ngo Van Diem BOD Member Payment for dividend in cash 20,000,000

Bui Quang Nghiem BOD Member Payment for dividend in cash 177,920,000

Nguyen Van Khai Head of BOS Payment for dividend in cash 100,012,000

Ho Thi Huong Tra BOS Member Payment for dividend in cash 12,168,000

Dang Phong Luu BOS Member Payment for dividend in cash 8,840,000

Hoang Thi Minh Thuy Chief Accountant Payment for dividend in cash 200,000

No Trader Affiliated person (AP)

Number of shares before trading

Owner-ship (*)

Number of shares after trading

Owner-ship (*)

Description

10 Ho Thi Huong Tra BOS Member 12,168 0.003% 20,168 0.006% Buying shares following Employee Stock Ownership Plan in December 2011

11 Hoang Thi Minh Thuy

Chief Accountant 200 0.000% 20,200 0.006% Buying shares following Employee Stock Ownership Plan in December 2011

Note: (*) Calculated on chartered capital at time of changing number of owned shares

Other tradings: (Trading statistics of Inside shareholders/ major shareholders and affiliated person)

Trader Affiliated Person Transaction Trading Volume (VND)

SSI Vision Fund Associate Revenue from brokerage services 3,101,131,542

Nguyen Duy Hung Co. Ltd., Major shareholder as well as be

company owned by Mr. Nguyen Duy

Hung, Chairman cum CEO

Payment for principal and interest of

convertible bond

235,040,000,000


Payment from Cooperation Contract 81,593,173,271

Payment for Cooperation Contract 52,139,768,582

SSI Real Estates Joint Stock

Company

Invested by SSI and the having the

same Chairman with SSI

Payment from Cooperation Contract 108,917,436,855

Payment for Cooperation Contract 48,814,192,344

Trading of Vnecobond 39,150,000,000

Principal payment of reverse

repurchase contract

4,892,544,000

Expense for real estate rent to be paid 3,041,414,338

Expense for leased real estate had

been paid

3,041,414,338

SSI Asset Management Co. Ltd.,

Company 100% owned by SSI Investment trust was received 962,163,549,666

Investment trust was liquidated 101,055,090,125

Profit was transferred to the holding company

50,000,000,000

Portfolio management fees were deducted in the period

7,893,412,410

Portfolio management fees were paid in the period

14,960,883,295


153152

Major shareholders’ ownership percentage after raising chartered capital on 30/01/2012

No Full name/ Institutional names Affiliated person No. of shares holding

Ownership percentage (cal-culated on chartered capital of VND 3,526,117,420,000)

1 Australia and New Zealand Banking Group Major shareholder 61,934,420 17.564%

2 Daiwa Securities Group Inc. Major shareholder 35,471,420 10.060%

3 Nguyen Duy Hung Co. Ltd., Major shareholder 28,705,036 8.141%

4 Nguyen Duy Hung Chairman cum CEO 186,000 0.053%

5 Nguyen Hong Nam BOD Member cum Deputy CEO 15,747,968 4.466%

6 Ngo Van Diem BOD Member 40,000 0.011%

7 Bui Quang Nghiem BOD Member 177,920 0.050%

8 Alistair Marshall Bulloch BOD Member 0 0.000%

9 Yoshio Urata BOD Member 0 0.000%

10 Dam Bich Thuy BOD Member 0 0.000%

11 Nguyen Van Khai Head of BOS 115,012 0.033%

12 Ho Thi Huong Tra BOS Member 20,168 0.006%

13 Dang Phong Luu BOS Member 16,840 0.005%

14 Hoang Thi Minh Thuy Chief Accountant 20,200 0.006%

The above data based on:i. List of Saigon Securities Inc. shareholders on 31/08/2011 – payment for dividend in 2010, finalized by the Vietnam Securities

Depository;ii. Report on issuance for key employees on 28/12/2011, which was summited to State Securities Commission of Vietnam,

Ho Chi Minh Stock Exchange, and Vietnam Securities Depository.iii. Disclosure of trading information by major shareholders and inside shareholder (if any).

Appendix 2: Shareholder structure and ownership on 30/01/2012

Structure and ownership of major shareholders on updating chartered capital of VND 3,526,117,420,000:(The updated based on the list of shareholders on 31/08/2011, which was finalized by the Vietnam Securities Depository in order to pay dividend in 2010 and the issuance for key employees as at 29/12/2011)

Shareholder Structure:

ItemsLocal Shareholders Foreign Shareholders Total

Value Ratio (%) Value Ratio (%) Value Ratio (%)

Total Chartered Capital 1,871,753,600,000 53.083% 1,654,363,820,000 46.917% 3,526,117,420,000 100.000%

State ownership - - - - - -

Founding shareholders - - - - - -

Majorshareholders(≥5%) 287,050,360,000 8.141% 974,058,400,000 27.624% 1,261,108,760,000 35.765%

Shareholders (from 1% to < 5%)

382,861,080,000 10.856% 0.000% 382,861,080,000 10.858%

Shareholders (<1%) 1,171,842,160,000 33.233% 680,305,420,000 19.293% 1,852,147,580,000 52.527%

Company Labour Union ownership

- - - - - -

Treasury shares 30,000,000,000 0.850% - - 30,000,000,000 0.850%


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Contact information

Corporate Communications – Saigon Securities Inc.

1C Ngo Quyen, Hoan Kiem, Hanoi, Vietnam

Tel: +84 4 3936 6321 Fax: +84 4 3936 6311

www.ssi.com.vn/InvestorRelations/

Email: [email protected]

CORPORATEINFORMATION

Corporate information

Company name: Saigon Securities Incorporation

BOD Chairman cum CEO: Mr. Nguyen Duy Hung

Incorporation Date: 30/12/1999

Chartered Capital (VND) (as at 30/1/2012): VND 3,526,117,420,000

Head-quarter: 72 Nguyen Hue, District 1, Hochiminh City

No. of employees ( as at 31/12/2010): 400 including 124 employees having securities trading certificates

Share information

No. of common shares outstanding (as at 30/01/2012)

352,611,742

No. of treasury shares (as at 30/01/2012) 3,000,000

Exchange: Hochiminh Stock Exchange (HOSE)

Ticker: SSI

Market Price (close price on 30/12/2011): VND 13,700

Cash dividend in 2010: 10%

Execution date: 22/09/2011

Ex- right trading date: 29/08/2011

Record date for registered shareholders entitled to cash dividend:

31/08/2011

Chartered capital raise due to issuance for key employees

VND 15,000,000,000

Close date of issuance 28/12/2011

No. of issued shares 1,500,000

Par value 10,000

Kind of share Common and retricted transfer

Time of restriction on transfer From 28/12/2011 to 28/12/2012

Continued listing 1,500,000 shares

Continued listing date 19/01/2012

Continued transaction date After ending up the restriction on transfer

CORPORATE INFORMATION

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NETWORKVISION

THE BUSINESS OF SUCCESS

SSI operates based on the vision “The Business of Success”.

At the heart of all our products and services is a drive for making success happen. We help unlock opportunities in financial markets, and turn it into prosperity and growth.

We put all our resources and ideas behind bringing success to our clients, our people, our shareholders and the communities we operate in.

MISSIONCONNECTING CAPITAL TO OPPORTUNITIES

SSI’s reason for existence is to connect capital to opportunities.

This purpose unifies all businesses that come under the SSI brand, and will guide any future diversification that the brand may undertake.

CORE VALUESSOLUTIONS-LED: We are focused on the outcome of making our customers successful, and we prioritize their individual needs over existing products or processes.

SKILLED: We are experts in our industry and in our markets, and will continually enhance our professional skills to provide the highest standards of service to our customers.

INVENTIVE: We empower and encourage our people to find creative new ways to bring success to SSI and its customers.

HEADQUARTER:72 NGUYEN HUE, DISTRICT 1, HOCHIMINH CITY

TEL: +84 8 3824 2897FAX: +84 8 3824 2997

NGUYEN CONG TRU BRANCH92-94-96-98 NGUYEN CONG TRU, DISTRICT 1, HOCHIMINH CITY

TEL: +84 8 3821 8567FAX: +84 8 3821 3867

VUNG TAU BRANCH4 LE LOI, VUNG TAU CITY

TEL: +84 64 352 1906FAX: +84 64 352 1907

NHA TRANG BRANCHLEVEL 3, QUEEN BUILDING, 50 LE THANH PHUONG, NHA TRANG CITY,KHANH HOA PROVINCE

TEL: +84 58 381 6969FAX: +84 58 381 6968

SAIGON SECURITIES INC. BRANCH AT HANOI1C NGO QUYEN, HOAN KIEM DISTRICT, HANOI

TEL: +84 4 3936 6321FAX: +84 4 3936 6311

MY DINH BRANCHTHE MANOR BUILDING – MY DINH, ME TRI, TU LIEM, HANOI

TEL: +84 4 3794 6699FAX: +84 4 3794 6677

HAI PHONG BRANCH22 LY TU TRONG, HONG BANG DISTRICT, HAIPHONG CITY

TEL: +84 31 356 9123FAX: +84 31 356 9130

TRAN BINH TRONG TRANSACTION OFFICE25 TRAN BINH TRONG, HOAN KIEM DISTRICT, HANOI

TEL: +84 4 3941 3383FAX: +84 4 3941 3385

HONG BANG TRANSACTION OFFICENO 769, HONG BANG ROAD, WARD 6, DISTRICT 6, HOCHIMINH CITY

TEL: +84 8 3969 5898FAX: +84 8 3969 5894

SSI ASSET MANAGEMENT COMPANY LTD.1C NGO QUYEN, HOAN KIEM DISTRICT, HANOI

TEL: +84 4 3936 6321FAX: +84 4 3936 6337

NETWORK

Date post:	31-May-2020
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VISION€¦ · VISION THE BUSINESS OF SUCCESS SSI operates based on the vision The Business of...

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